Skanska Innisfree achieves Financial Close of the £174 million Walsall Hospital PFI Healthcare scheme.

Press release 14/11/2007 00:00 CET

Skanska Innisfree has reached Financial Close for the delivery of a 33-year PFI scheme to design, build, finance, and operate a major healthcare development in Walsall – Manor Hospital. This project, for the Walsall Hospitals NHS Trust, will include a construction contract worth around £174 million, which will be included in Skanska’s order bookings for the fourth quarter 2007.

Skanska Infrastructure Development is co-owner of the special purpose company holding a 50 per cent share and is investing around £ 8.2 million. Innisfree also holds a 50 per cent share of the company.

Skanska will undertake the design and construction contract and the hard facilities management of the hospital for the life of the project. The hard FM service contract is valued at around £2.3 million per annum.

Throughout the phased construction period, all existing healthcare facilities will remain fully operational.

Key advance works have been completed and main construction will begin this month with the completion of all new accommodation set for the autumn of 2010 and full completion of the scheme in the summer of 2011.

Within the 40,000m2 of new accommodation, a modular ward block containing 136 beds is provided, which will offer the local health community flexibility for their future needs. This unit will complement the existing retained estate, some of which is to be refurbished, to provide a total of 558 inpatient beds at completion of the scheme.

The redevelopment of Manor Hospital will include the extensive rejuvenation of the existing facilities to create a single unified hospital. The current, outdated buildings will be replaced; a new state-of-the-art Diagnostic and Treatment Centre will be created along with a new Women, Children and Young Peoples Centre linked to the existing Maternity Unit. A new Multi-Professional Education Centre will provide superb training facilities integrated within the mainstream hospital environment.

The new Diagnostic and Treatment Centre will be accessed from a new main entrance and will provide specialist and generic outpatient services, day case unit and operating theatres.

The new Women, Children and Young Peoples Centre will have its own dedicated entrance from the main hospital concourse and will provide integrated care for both inpatient and outpatient visitors with shared diagnostics and operating theatres in a secure environment intrinsically linked to the existing maternity unit.

The new hospital, which is less than one mile from the town centre, has been designed to be a landmark for the community it serves with access for both pedestrians and vehicles being greatly improved. The majority of clinical services will be within one building, but with separation of emergency and elective departments, with clear wayfinding throughout.

Health Care Projects are responsible for management services on the project. Soft FM services, including waste and medical equipment will be undertaken by the Trust. The Architect for the scheme is Steffian Bradley Associates.

Steve Sams, Executive Vice President for Skanska Infrastructure Development said: "We are absolutely delighted to have reached this major milestone on this project together with the Trust and all our partners. This development will make a real difference to the people of Walsall and we look forward to a long and successful relationship over the years to come."

Tim Pearson, Director of Innisfree Limited, said: "We are delighted to be playing our part in this project. As far as Innisfree is concerned, this has been a model public/private partnership from the start, with terrific cooperation and teamwork. We look forward to building and then maintaining a first-class hospital that will be at the centre of Walsall's regeneration programme."

David Tydeman, Executive Vice President of Skanska’s Construction Business Unit said: "We're very pleased to secure this contract and have the opportunity to play a significant role in the regeneration of Walsall’s critical facilities and medical resources. Skanska is committed to the Midlands region and this hospital is our fourth major project in this part of the country. We look forward to delivering this construction programme on time and to strengthening our long term role in supporting community services"

Sue James, Chief Executive of Walsall Hospitals NHS Trust said: “We are delighted to have completed the negotiations for our new hospital. The scheme – which is the result of several years of hard work by hospital staff, our partners in the PFI company and advisers – is designed to replace buildings that are over 150 years old and to be as flexible as possible so that we can respond to the changing needs of health care for the next generation of patients.”