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Balfour Beatty seals deal for £170m Fife hospital PPP

Balfour Beatty has reached financial close on the £170 million Fife General Hospital and Maternity Services PPP project for NHS Fife.

The new wing, which has been under construction since September 2008 under an advanced works agreement, will built by Balfour Beatty Construction and Haden Young. 

Under the 30-year concession, Consort – Balfour Beatty’s specialist PPP healthcare arm – will provide a new wing to Victoria Hospital in Kirkcaldy, including 11 operating theatres, an emergency care centre and 13 wards.

It will also construct surgical and medical assessment units, a maternity unit, a women and children’s unit, day intervention, critical care, coronary care and renal and dialysis facilities.

Balfour Beatty chief executive Ian Tyler said: “We believe that our design, developed in full consultation with NHS Fife’s project team and healthcare professionals, will create a first-class, efficient facility with an improved environment for patients and staff that will also make a high-quality addition to the local built environment.”

The construction of the new wing at Victoria Hospital is currently the largest construction programme in Fife.

Balfour Beatty Capital will invest £9.5 million of equity in the project, as will HSBC, its financial partner. The total amount of debt funding is £170 million.

The project is due for completion in 2011.                        

Future developments outside the PPP project include the re-configuration of services at Victoria and Queen Margaret Hospitals, once the new wing has been completed.