Skanska has been selected as preferred bidder to build a new £165m PFI hospital in Cambridge.

The firm has been picked to build the new Papworth Hospital, comprising a  310-bed, purpose-built hospital, with virtually 100% single rooms, and a research and education institute on the Cambridge Biomedical Campus.

The Papworth Hospital NHS Foundation Trust said a Skanska consortium, comprising Skanska Infrastructure Investment UK, Skanska Construction UK, and Skanska Facilities Services,  had been chosen as preferred bidder for the £165m project, beating competition from a a Bouygues-led consortium, comprising Bouygues UK and Ecovert FM.

Skanska will design, build, finance and maintain the new hospital.

The Trust said work would now begin on finalising the contract with the selected PFI partner.

It is anticipated that the construction will commence in Autumn 2014.

The construction phase is expected to be complete by early 2017.