Skanska Innisfree achieve contract close on Derby Hospital

Press release 04/09/2003 00:00 CET

Skanska Innisfree has achieved contract signature on the 40-year PFI scheme to design, build, finance and operate a major hospital development in Derby, followed by a bond launch to the market this week, leaving the way clear for construction work to start.

The project involves the remodelling and redevelopment of the existing Derby City General Hospital site in Derby for the Southern Derbyshire Acute Hospitals NHS Trust. The new acute hospital will combine services from both the existing Derby City General hospital and the Derbyshire Royal Infirmary to provide a modern energy efficient environment on one site with state-of-the-art equipment.

Skanska has been awarded the £333 million contract for the design and construction of the new hospital, which includes M&E installations and the IT infrastructure. Architect for the project is Capita. A 35-year hard FM contract worth £3.6 million per annum has also been awarded to Skanska; soft FM services will be handled by Medirest with sterile services being run by Synergy.

Innisfree and Skanska is providing the investment capital with Health Care Projects providing management services to the consortium. The project is being financed by £410m public issue bond, guaranteed by MBIA and underwritten by BNP Paribas.

Enabling construction work has already started and the project will be handed over in phases with completion scheduled for the end of 2008. Unusually services’ mobilisation on the Trust’s existing sites, the Derby City General Hospital and the, Derbyshire Royal Infirmary started at the beginning of April when 78 of the hospitals’ existing facility services staff were TUPE transferred into Skanska and the soft services staff were either transferred to, or are being managed by, Medirest under RoE.

Welcoming today’s announcement David Fison CEO of Skanska UK said:
“We are delighted to have reached financial closure in the record time of just over 12 months from final bidder stage. The Trust has been very supportive and together we look forward to opening the new hospital at the end of 2008. Skanska has built up a strong team in the PFI healthcare sector which has, in the past eight months, closed two major hospital projects – this one and another in Coventry – an achievement of which we are justifiably proud”

Brian Ibell, project director and the Trust’s assistant chief executive, said: “The contract to build and maintain the new hospital in Derby is one of the largest and probably most complex in the UK. Setting new standards, it has taken only 12 months from the final bidder stage to actually signing the contracts. This achievement reflects the excellent partnership working already established between the Trust and the Skanska Innisfree consortium.”