Bovis Lend Lease has been given the go-ahead for a £220m PFI cancer centre in Leeds.

In joint venture with Bank of Scotland, it has reached financial close on an oncology unit to be built for Leeds Teaching Hospitals NHS Trust at St James’s University Hospital in Leeds.

It is the first PFI health scheme where the Bovis–Bank of Scotland joint venture is responsible for medical equipment services. The contract also includes construction, facilities management and lifecycle maintenance for 30 years.

The 65,000 m2 centre has been designed by Anglo-American architect Anshen Dyer. FaberMaunsell will provide civil and structural engineering and building services.

According to Bovis, it is the first UK PFI scheme to use credit guarantee finance, whereby banks retain the risks but government gilts are used to fund the project.

Construction is expected to start in November, with completion due in December 2007.

Bovis–Bank of Scotland is also preferred bidder on a £370m PFI hospital in Manchester.