A joint venture led by Black Country headquartered support services giant Carillion has been named as the preferred bidder by the Sandwell and West Birmingham Hospitals NHS Trust to construct the new £430m Midland Metropolitan Hospital in Smethwick.

Carillion were awarded preferred bidder status as part of a joint venture – Public Private Partnership under a 30-year concession contract using the UK Government’s PF2 model. The new 8 storey state-of the-art acute hospital, which will have 15 operating theatre suites, critical care units, clinical consultation suites, a maternity unit and an accident and emergency department on the lower floors whilst the upper floors will consist of state-of-the-art en-suite and multi-bed wards providing bedspace for around 670 patients.

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The 21st century healthcare facility will have a number of innovative design features including a fully enclosed Winter Garden with canal-side and panoramic views across Birmingham & the Black Country, retail outlets, car parking within the hospital building on the ground and first floors to create a secure environment, clinical services and operating theatres will be located on the lower floors whilst the main reception, hospital foyer for general admissions, visitors restaurant and patient space will be positioned on the upper floors.

Carillion will invest over £16 million of equity in the project, which will be built by Carillion at a capital cost of £297 million. Hard facilities management and life-cycle maintenance services will also be delivered by Carillion and these services are expected to generate approximately £140 million of revenue over the life of the concession contract.

Financial close is expected around the end of 2015 with construction starting early in 2016. Completion is scheduled for mid-2018, with the hospital opening in late 2018. As the leading provider of apprenticeships and training in its sector, Carillion will use this project as a further opportunity to provide training and apprenticeship opportunities as well boosting the region’s economy through maximising the use of local suppliers. Carillion have pledged to work with Sandwell Council to support the Council’s wider economic development plans for Smethwick using the Council’s award-winning West Midlands Virtual Hospital to make the Midland Metropolitan contracts transparent and accessible to the local supply chain showing Carillion’s public commitment to responsible procurement

Carillion Plc Chief Executive, Richard Howson, said: “We are delighted to have been selected as the preferred bidder for this important new hospital. Carillion has delivered over 60 Public Private Partnership projects, including more than 20 healthcare projects, and this latest success reinforces our position as a leader in the PPP market. We look forward to working with the Sandwell and West Birmingham Hospitals NHS Trust to deliver a state-of-the-art facility that will enable the Trust to achieve its objectives for delivering significant improvements in healthcare services for the people of Sandwell and West Birmingham”.