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Midland hospital offers £13m to fix ‘deteriorating’ site

The Sandwell and West Birmingham Hospitals NHS Trust is offering £13m for a contractor to protect work on the stalled £350m Midland Metropolitan Hospital site.

The trust is trying to prevent work that had been carried out by Carillion from further damage while a new deal to complete the hospital is put in place.

Chief executive of the trust Toby Lewis has previously told its board “the site is deteriorating now” and “rework costs will therefore be significant”.

The trust wants to receive expressions of interest from contractors with experience in acute hospital construction.

A contract notice with more details about the job is expected to be published before the end of August.

As reported last week, the trust is currently exploring whether a new PF2 deal can be set up to finish the hospital.

Construction News understands that if the trust decides this route is not viable, then the hospital will be completed as a government-procured construction job.

Mr Lewis said: “We continue to work closely with government and others to secure the right arrangement to complete the much-needed Midland Metropolitan Hospital.

“It was due to be completed in 2018 and we are working to deliver it without fail by 2022.  

“Any option which creates a risk of delay beyond that must be undesirable.”

Skanska had been expected to take over at the site earlier this year, with Midland metro mayor Andy Street calling on the Treasury to confirm the appointment.

However, a replacement contractor to complete the job is now not expected to be named until new financing for the hospital is in place.

The original PF2 was terminated by the Treasury – which has a £100m stake in the hospital – and five private lenders last month when a deal to complete the job could not be agreed.

Completion of the hospital was initially pushed back to 2020 when Carillion collapsed, but the trust now believes a 2022 opening is “the most likely scenario”.

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