PPP contract spans 30 years with construction starting this month
A Carillion joint venture has reached financial close on a £1.7bn PPP hospital in Canada.
The Carillion led consortium – Hospital Infrastructure Partners – was selected in June to finance, design and build the Oakville hospital in Ontario by Halton Healthcare Services and Infrastructure Ontario.
The JV will also provide facilities management and life-cycle maintenance services for the new hospital.
Carillion will invest £28m of equity in the project, giving them a 40% equity share in the joint venture.
As a result Carillion’s share of the JV’s revenue is expected to be approximately £500m over the life-span of the 30 year contract.
The contract is worth £1.3 billion at 2011 prices and £1.7 billion after taking into account anticipated price inflation over the contract period.
Construction will begin before the end of August with completion scheduled for Summer 2015.
Commenting on the deal, Carillion chief executive, John McDonough, said: “We are delighted to have achieved financial close on this important new hospital project in less than two months since our appointment as preferred bidder.
“Securing this contract further reinforces Carillion’s position as a leader in the PPP market, particularly in the health sector.
“We look forward to working with Infrastructure Ontario and Halton Healthcare Services to deliver this state of the art hospital, for which we will also provide facilities management and life-cycle maintenance services.”
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