Contractor confirmed as preferred bidder on 800-bed development

Carillion has sealed the deal on a £450m PPP hospital redevelopment in Bristol.

The firm has been confirmed as preferred bidder on the 800-bed Southmead Hospital by North Bristol NHS Trust.

The contractor will finance the acute hospital and expects to invest up to £50m as part of a joint venture with Bank of Scotland Corporate. It will also provide design, construction, maintenance and facilities management services over the 30-year concession period.

The scheme, which is due to open in early 2014, will concentrate the acute services provided at the Southmead and Frenchay hospitals onto a single site. It also includes a 28-bed community hospital.

John McDonough, Carillion chief executive, said: "We are delighted to have been selected as the preferred bidder for the North Bristol project, which will be our largest PPP hospital to date.”