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Royal Liverpool lenders ‘remain committed’ to £335m hospital

The financial backers of Carillion’s £335m Royal Liverpool Hospital “remain committed” to the project, according to its NHS trust.

Following the termination of the PFI deal on Carillion’s other major hospital project – the Midland Metropolitan – the Royal Liverpool and Broadgreen University Hospitals NHS Trust moved to reassure board members that the project’s lenders were still on board.

NHS Trust chief executive Aidan Kehoe wrote: “Board members may be aware that the banks, including the European Investment Bank (EIB), have withdrawn funding for Carillion’s other major hospital scheme, the Midland Metropolitan Hospital in West Birmingham.

“At this stage both EIB and Legal and General remain committed to the Royal Liverpool scheme.”

Mr Kehoe added that the trust continued to wait for Arup to complete its structural review, which would inform the project’s costs for completion and timescales.

The risk management section of the report revealed the trust had submitted a report to government ministers detailing the available options for restarting work last month.

The plan was devised following meetings between lenders, the NHS Private Finance Unit and the Infrastructure and Projects Authority.

Following the submission, the trust said discussions “continue” regarding restart of work, with “more detail” expected at the end of July.

Laing O’Rourke was understood to have been lined up to replace Carillion as the Royal Liverpool Hospital contractor; however, an agreement has not yet been reached.

The NHS trust said it was “hugely disappointed” the scheduled completion date of this summer would not be met.

The £335m scheme has been hit by a number of setbacks and missed deadlines.

In January 2016 cracked concrete beams were discovered resulting in a delay of a year.

A further delay was revealed shortly before Carillion’s collapse, with the trust warning that it would “closely monitor” Carillion’s work on the project.

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