Financial close for Britain’s biggest hospital scheme – Barts and The London

The Royal London will be the largest new hospital in the UK.  St Bartholomew’s will be transformed into a Cancer and Cardiac Centre of Excellence.  The combined facilities will provide a total of up to 1,248 patient beds.

Barts and The London NHS Trust have awarded the project to the consortium.  The Trust will continue to make all decisions on clinical management and development, with patient care provided free at the point of delivery just as it is now.

The 42-year contract includes a construction programme, worth around £1 billion, to be undertaken by Skanska, which will be included in the second quarter order bookings and is Skanska’s largest ever construction project.

Skanska is co-owner of the special purpose company named Capital Hospitals holding a 37.5 per cent share and is investing £ 48 M (including £ 7.5M in mezzanine finance).  Innisfree also holds a 37.5 per cent share of the company with the remaining 25 per cent held by Equion.

Skanska and its investment partners who are responsible for the financing, design, construction and operation of the project for the term of the contract, will draw on key partnerships during the redevelopment and operation of the hospitals:

Skanska UK will undertake the design and construction project on the two sites, which covers a built area of 270,000 square metres. This comprises new construction and refurbishment of some of the existing facilities. Skanska UK will also carry out hard FM and waste services.  This will result in a contract worth around £7.5 million, per annum over the 42-year contract period commencing July 2006. 

Preliminary work has begun and the first phase, the Cancer Centre at Barts, is scheduled to be completed in 2010.  All construction is scheduled for completion in 2016.  The hospitals will remain in operation during the entire construction period.

Health Care Projects are responsible for management services on the project. Sovereign Hospital Services (Carillion Plc) will be responsible for soft FM services with Siemens Medical Solutions carrying out managed technology services for medical equipment and Synergy Healthcare providing sterile services.  Architect for the scheme is HOK.

 
Simon Hipperson, Business Unit President, Skanska Infrastructure Development on behalf of the project company said: “We are delighted to be moving forward to the full redevelopment of these hospitals.  We are very proud to be part of the team that includes the Trust, ourselves, all of our partners in the consortium and the many stakeholders that these hospitals touch to provide these long awaited new healthcare facilities for the communities they serve. ”

David Fison, Chief Executive, Skanska UK said: “Our involvement on this scheme so far has spanned over four years. I am immensely proud of the 350 people, Skanska staff, trade contractors, designers and operatives who have been working on this project during that time.  Projects like Barts & The London have enabled Skanska to build up its capability. Not just construction capability, but complex programme management and stakeholder issues that these projects demand.  With jobs like these, we are moving construction from bricks and mortar to a true service industry.”

Paul White, Chief Executive, Barts and The London NHS Trust said: “The redevelopment of Barts Hospital and The Royal London Hospital will deliver world-class medical facilities for the people of East London and beyond. We have worked closely with the project team from Skanska Innisfree over the past four years and we are delighted to have now achieved financial close which will enable building work to begin. This is an important milestone in the history of our historic hospitals.”

James Stewart, Chief Executive of Partnerships UK, advisors to the Trust on its new hospitals programme, said: "Partnerships UK has provided close and active support to the Trust throughout the process of letting this very complex contract. This is the largest hospital project completed under PFI. I am delighted that the deal is now successfully closed and that St Bartholomew's and the Royal London hospitals, which serve some of the most deprived areas in England, will be transformed."

For further information please contact:
Tanya Barnes, Head of Communications, Skanska UK, tel +44 1923 423 905
Marie Mangan, Head of Media Relations, Barts and The London NHS Trust, Tel +44 20 7480 4891

Images can be downloaded from www.skanska.co.uk/bandrlimages

NOTES TO EDITORS:

The Barts and The London Hospitals redevelopment – Key Facts

The Team

Client    
Barts and The London NHS Trust

Special Purpose Company  
Skanska, Innisfree and Equion

Construction  
Skanska

Architect
HOK

Hard FM & Waste Services  
From July 2006, Skanska will be responsible for the planned, corrective and reactive maintenance during the concession period of the following: grounds and landscaping, engineering services, specialist equipment and systems energy management, non-medical equipment and waste management.

Soft FM Services
From July 2006, Sovereign Hospital Services (Carillion Plc) will undertake the Soft FM services at the hospitals to include: Catering (Patient and Non Patient), Cleaning, Housekeeping, Laundry, Portering, Receipt and Distribution, Reception, Security, Telecommunications, Transport.

Managed Technology Services for Medical Equipment
Siemens Medical Solutions

Sterile Services
From May 2006, Synergy Healthcare plc will commence the surgical instrument decontamination service.

St Bartholomew’s  (Barts)

Barts Hospital will become a Cancer and Cardiac Centre of Excellence, incorporating services from The London Chest Hospital.  The state-of-the-art facilities for cancer will include the recently opened Breast Care Centre, and patients will be investigated or treated for heart disease using the most up-to-date equipment.

Minor injuries will continue to be treated at Barts, and Sexual Health Services, the Trust's Centre for Reproductive Medicine and an integrated rehabilitation unit will remain at the hospital.

The new hospital will provide specialist cancer and cardiac services to the residents of the City, east London and beyond, and will include:

- Up to 343 patient beds, with more than 40per cent in single rooms with en-suite facilities   and the remainder in spacious, four-bedded bays
- State-of-the-art facilities for cancer, including a Breast Care Centre opened by the Trust   in 2004 
- Minor injuries unit, complemented by London’s leading A&E at The Royal London, on the   City’s doorstep
- Sexual health Services, the Trust’s Centre for Reproductive Medicine and an integrated   rehabilitation unit, located in the refurbished, grade II listed Kenton and Lucas Wing at   the hospital
- Cardiac services incorporated from The London Chest hospital
- Glass atria, pedestrian piazzas and landscaped gardens to create warm, safe, welcoming and   healing environment
- Blending of historic Georgian wings with the modern architecture of a new building   purpose-built to support the delivery of 21st-century clinical care
- Restoration and pedestrianisation of Barts Square to its 18th-Century status for the   enjoyment of patients, visitors and staff

The proposals for Barts blend the hospital’s historic Georgian buildings with the modern architecture of a new building designed for 21st -century clinical care.  The hospital will benefit from a clear focal point of access and main reception.

The new building will replace the existing King George V Block and Queen Mary Wing, and will complement the Grade-I listed architecture of the remaining buildings.  It will be finished in Portland stone to blend into the historic setting and the St Paul's skyline will be protected.

Within the overall urban design strategy, the existing buildings have been sensitively refurbished with specific focus on restoring the Square from which parking will be removed, restoring it to its 18th century status as a pedestrian space for the enjoyment of patients, visitors and staff.  The restoration plan incorporates the fountain and its adjacent shelters and lamp standards.

The contemporary landscaping proposals, including repaving the Square to the facades of the buildings, will add a new dimension to this important civic space whilst enhancing the Smithfield Conservation Area.

The hospital environment has been designed with airy glass atria, pedestrian piazzas and landscaped gardens, to create a warm, safe, welcoming and healing sanctuary from the bustling urban environment of the City.

The main construction work on the hospital is due start immediately.  The new hospital is expected to be fully complete in 2016, with major elements ready beforehand, including the new cancer facility in 2010.  

The Royal London Hospital

The Royal London Hospital provides district general hospital services for the City and Tower Hamlets and specialist tertiary care services for patients from across London and beyond.  Britain’s biggest new hospital will include London’s leading trauma and emergency care centre, one of Europe’s largest renal services and the capital’s second biggest paediatric service, provided within a dedicated Women and Children’s unit.  

The redevelopment of The Royal London will transform the hospital experience for patients with state-of-the-art facilities and standards of care to rival the best in Europe.

The new hospital will continue to provide clinically renowned general and specialist services to the residents of east London, the City and beyond, and will include:

- Up to 905 patient beds – more than 40per cent in single rooms with en-suite facilities,   the remainder in spacious, four-bedded bays
- London’s leading trauma and emergency care centre, including the Helicopter Emergency   Medical Service (HEMS).
- London’s second largest paediatric service, within a dedicated Women and Children’s unit
- A beacon for regeneration and investment in Whitechapel, in particular local employment   during and after construction
- Glass atria, pedestrian piazzas and landscaped gardens to create a welcoming and healing   environment
 
The new hospital at The Royal London will feature a cluster of inter-connected contemporary glass buildings, including two towers, one equipped with the helipad for London’s Helicopter Emergency Medical Service (HEMS), which is based at the hospital.

The new development will replace many of the existing buildings with a coherent structure, purpose-built to support the delivery of 21st-century clinical care.  It will be sympathetic to the hospital’s historic buildings, which will be retained, and will greatly improve the link across Whitechapel Road to the tube station.

The hospital environment has been designed to be warm, safe, welcoming, and healing.  Airy glass atria, pedestrian piazzas, and landscaped open spaces will create a sanctuary from the bustling urban environment of Whitechapel.

The new hospital is expected to be fully complete in 2016, with approximately 75% of The Royal London redevelopment ready in 2012.  

In contrast to the existing buildings, which have had to adapt to the demands of modern health care, the new hospitals are being designed for 21st-century clinical functionality.  At the heart of the team’s approach is an innovative concept that clusters support service delivery facilities in hubs serving zones comprising suites of beds or departments in order to minimise disruption to clinical activities.

Both hospitals are being designed for energy efficiency – using the ventilation systems to optimise heat recovery, and energy-efficient services equipment.  The project team continues to work with the Trust to explore other innovative and cost effective energy solutions.

The project team will be responsible for maintaining the buildings that form Barts and the Royal London hospitals to high standards, ensuring that the quality is maintained throughout the duration of the contract.

Skanska is a leader in the UK’s Public Private Partnership (PPP)/Private Finance Initiative (PFI) programme with a portfolio of schemes worth in excess of £ 3.8 billion. In the UK, the company employs 3500 people and achieved revenue of £793 million and operating income of £25.5 million for the year ending December 31st 2005.

Skanska Infrastructure Development has now developed and invested (or undertaken to invest) more than £ 90 M, in UK PFI projects, mainly hospitals and schools.

Innisfree is the leading infrastructure investment group in the UK sponsoring and investing in PFI and PPP infrastructure projects. Innisfree provides the principal channel for institutional investors to invest in PPP/PFI assets and has to date raised £1,120 million for investment in PFI and PPP project companies.

Equion, part of John Laing plc, is a specialist provider of PFI and PPP accommodation projects offering a combination of skills and experience from planning and funding through to design, construction and operation.

Barts and The London is one of the largest, busiest and most respected teaching hospital trusts in the UK, employing around 8,000 staff and providing services to a catchment area of 2.5 million people.  The Trust provides general hospital services to Tower Hamlets and the City and specialist services for East London and beyond.

Partnerships UK is a public-private partnership, which works with and for the public sector to support and accelerate the delivery of infrastructure renewal, high quality public services and the efficient use of public assets through better and stronger partnerships between the public and private sectors.

HOK offers specialist skills to meet the needs of commercial developers, corporations, the hospitality industry, sport and public institutions such as airports, hospitals and universities. With 250 staff in London, HOK is one of the largest architectural and interior design firms in Europe with emphasis on work in the commercial, corporate, and public sectors. HOK International Limited is part of a global network of offices on four continents with staff of over 2,000 people serving clients by improving the built environment.

Sovereign Hospital Services (Carillion Plc) On 23rd February 2006 Mowlem Plc became a wholly owned subsidiary of Carillion plc. Carillion is one of the UK’s leading business and construction services companies, with a turnover of £4bn and around 40,000 employees.

Synergy Healthcare plc is a leading provider of outsourced medical services to the UK and the Netherlands, with an annualised turnover of over £130million and has over 2500 employees.  It is the UK’s largest provider of decontamination and sterile services for surgical instruments operating fifteen facilities and processing approximately 40 million instruments per annum.  Synergy has been providing sterile services in the UK since 1996 and has recently been appointed preferred bidder for a large contract in the Netherlands.  All of its units comply with the latest European standards for the decontamination of surgical instruments. 

Siemens Medical Solutions is one of the largest suppliers of healthcare equipment in the world and it is renowned for its innovative products, services and complete solutions, ranging from imaging systems for diagnosis and therapy equipment for treatment, to electromedicine and hearing instruments to IT solutions that optimise workflow and increase efficiency in hospitals and clinics.  Siemens are the market leader in the provision of Managed Technology Services to the UK healthcare sector, where our solutions are designed to address all high technology requirements within a modern hospital.

This and previous releases can also be found at www.skanska.co.uk