A joint venture of Cyrill Sweett and Miller has closed a £435 million deal to deliver projects through the Northern Hub of the Scottish Futures Trust, paving the way for construction to start later this year.
The JV – Alba Community Partnerships – signed a partnership agreement yesterday with local public sector bodies, including Aberdeen City Council and the Highland and Islands Fire and Rescue Services, to create a hub company that will deliver capital projects for a 10-year period.
Four design and build schemes are initially planned, with three due to start construction this year. The projects are:
- Aberdeen Health Village - £21 million (2011 start)
- Tain Replacement Health Centre - £6 million (2011)
- Woodside Medical Group - £6 million (2012)
- Forres Health Centre - £8 million (2011)
The projects will be delivered through the HubCo and financed by either D&B or project finance arrangements depending on individual circumstances.
Miller and Cyril Sweett were first awarded the contract in November 2010, and yesterday’s signing of the agreement to form the hub followed all financing for the scheme being put in place.
The SFT’s hub initiative is planned to deliver more than £1 billion of new community infrastructure across Scotland though five contracts.
The northern hub is the second of the five to be awarded. Apart from the north hub, Scotland has hubCos operating in the south east and east central regions. The west hub project recently went into procurement following which the south west is expected to be tendered in mid-May 2011.
Pinsent Masons is offering legal counsel to the authority. Financial advice comes from PwC while Mott Macdonald is providing technical advice.