Contractor was left as the sole bidder after an Interserve-Laing O’Rourke joint venture dropped out

Planning permission has been awarded to Carillion’s £430m Midland Metropolitan Hospital project in Birmingham.

Carillion was left as the sole bidder for the PF2 hospital this summer after the other shortlisted consortium, Laing O’Rourke-Interserve, dropped out of the bidding race in April.

Under the PF2 model, Carillion will deliver the hospital for Sandwell and West Birmingham Hospitals NHS Trust under a 30-year concession contract.

The hospital will have approximately 670 beds and 15 operating theatre suites.

Chairman, Richard Samuda, said: “This is yet another exciting step in the decade long campaign to bring 21st century hospital care to local residents and create an environment that staff can be proud to work within.  This is the last-but-one step, with the Trust now able to proceed to try and sign a contract, with our preferred supplier.  We aim to do that before January 2016.”

Financial close is expected around the end of 2015, with construction starting early in 2016. Completion is scheduled for mid-2018, with the hospital opening later that year.