Carillion wins £390m Canadian hospital contract

A Carillion joint venture has been apppointed as preferred bidder on a design, build and maintenance contract in Ontario, Canada.

Hospital Infrastructure Partners, which also includes EllisDon, Honeywell and Scotia Capital, has been selected by Infrastructure Ontario and Halton Healthcare Servicefor the replacement Oakville Hospital.  

The project will be delivered using an Alternative Financing and Procurement (AFP) model, which is similar to the UK’s Public Private Partnership model.

Carillion expects to invest some £28m of equity in the project and will also be a member of the joint venture that will carry out the construction work and provide facilities management and life-cycle maintenance services over the 30-year concession period that together are expected to generate approximately £390m of revenue for Carillion. 

Construction will begin immediately after financial close expected this Summer, and be completed in 2015.

It will be designed and built to meet the Canada Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system, with a goal of achieving LEED Silver certification.

Commenting, John McDonough, Carillion chief executive, said: “We are delighted to have been selected as the preferred bidder for this important new hospital, which further reinforces our position as a leader in delivering Public Private Partnership projects in Canada, particularly in the health sector.  We look forward to working with Infrastructure Ontario and Halton Healthcare Services to achieve financial close and then to deliver this new state-of-the-art hospital, for which we will also provide facilities management and maintenance services.”