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11 March 2015

Financial close is achieved on NHS Dumfries and Galloway hospital project

NHS Dumfries and Galloway and High Wood Health, a consortium including Laing O’Rourke, have achieved financial close on a £270m project that will deliver a new acute district general hospital for the region.

The new facility is designed to incorporate new models of care that accommodate the needs of patients in Dumfries and Galloway and enable staff to deliver the best possible healthcare. It includes one hundred percent en-suite single rooms, a combined assessment unit, theatres complex, critical care unit and outpatients department.

The project is one of five healthcare projects being procured under the Scottish Government’s Non Profit Distributing (NPD) model. The European Investment Bank (EIB), Europe’s long-term lending institution, has agreed to provide £109 million for the new hospital with a 26 year loan that represents around half of the senior debt of the new hospital.

High Wood Health, a consortium of Laing O’Rourke and Aberdeen UK Infrastructure Partners (a fund managed by Aberdeen Asset Management), is working on the project with a number of specialist organisations experienced in collaborating with the NHS on major new hospital developments: Laing O’Rourke will build the new hospital, which they are designing with architects Ryder Architects and NBBJ. Estate management specialist Serco will manage the estates aspects of the facility when it’s delivered.

Preparation for construction will begin immediately on a green field site on the outskirts of Dumfries.

Scottish Health Secretary Shona Robison said:
“This is an exciting step forward for the new Dumfries Hospital and I’m pleased that work will soon begin on the £270 million project. The hospital will provide a brand new Emergency Care Department, a combined theatre complex for day surgery, endoscopy and surgical patients, and consolidated ambulatory care. These new facilities will transform healthcare in the Dumfries region, providing patients with the highest quality facilities in their local area.

“The Scottish Government is investing over £2billion in Scotland’s health infrastructure over four years, to 2015-16, with this development being one of many that demonstrates the Scottish Government’s commitment to continually improving health services.”

Jeff Ace, Chief Executive, NHS Dumfries and Galloway said:
“The complexity of the project is such that it’s taken us years of hard work to reach this milestone. We’ve succeeded only through the consistent support of the Scottish Government and the unstinting efforts of Julie White, our Chief Operating Officer, and her local project team. On behalf of the NHS Board I’d like to thank everyone who’s committed so much of their time and expertise to this project.

“We anticipate that our region’s new acute hospital will open to its first patients in the final quarter of 2017. In the meantime, we will continue to hold public and staff engagement events to showcase the design and to update on clinical redesign progress.”

Dennis O’Keeffe, NHS Dumfries and Galloway Project Director for the new hospital said:
“Reaching financial close represents a pivotal moment for the delivery of the new hospital. The deal struck with High Wood Health represents excellent value for money for the Board over the duration of the entire contract that exceeds prior expectations. It incorporates an ambitious, innovative high quality design that is energy efficient, sustainable and adaptable and will enable the delivery of the Board’s new model of care. The deal will also bring with it numerous community benefits that include 150 new jobs entrants, 36 modern apprenticeships and a range of opportunities for small and medium businesses, boosting the local economy and contributing to economic regeneration.

“It has been a pleasure to partner with High Wood Health as our preferred bidder and together we have reached financial close in record time for a project of its scale and complexity.”

Laing O’Rourke’s David Hunter, also Bid Director for High Wood Health, said:
“The journey to reach this milestone has been a fantastic example of collaboration between the NHS Dumfries and Galloway team, the hospital staff and end users, and the High Wood Health project team. The detailed work we have carried out together over the past few months has seen the completion of the clinical design and has paved the way for the delivery of a world class hospital; and an approach for construction that will ensure its positive impact upon the local community and economy.

“With financial close now achieved, High Wood Health and our partners are looking forward to progressing in earnest with the construction works onsite – meaning the next phase in this landmark project can begin.”
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