News

Balfour Beatty awarded £180 million construction contract as New Victoria and Stobhill Hospitals project reaches financial close

23 August 2006

Balfour Beatty the international engineering, construction and services group announces today that its subsidiary Balfour Beatty Construction (BBCL), through an alliance with the specialist developer Canmore Partnership Ltd, has secured financial close on the new Victoria & Stobhill Hospitals project in Glasgow.

BBCL will be responsible for the £180m contract to design and construct the new hospitals which will be built in close proximity to existing healthcare facilities: one to be located on the Stobhill Hospital Campus in the north of Glasgow and the other, adjacent to the Victoria Infirmary on the south side of the city.

Commenting today, Balfour Beatty's Chief Executive Ian Tyler said:

“Balfour Beatty is delighted to have reached this landmark stage in partnership with both Canmore and NHS Greater Glasgow & Clyde and now looks forward to delivering two brand new hospitals that will significantly enhance acute hospital care throughout Glasgow.

“We have a long tradition of delivering successful healthcare projects in Glasgow and this is the third healthcare project we have secured in partnership with Canmore.”

The facilities, which are scheduled for completion in Spring 2009 form Phase 1 of NHS Greater Glasgow & Clyde's hospital modernisation programme which will radically improve healthcare facilities across the city. Each hospital will be equipped with day-care operating theatres, imaging treatment facilities, Endoscopy and Dialysis units together with MRI equipment, which will be at the forefront of diagnostic treatment provision.

The PFI concession which is for 33 years will be operated by a special purpose company owned by Canmore Partnership Ltd, Barclays Private Equity, UME Investments and The PFI Infrastructure Company.

In Glasgow, Balfour Beatty is currently constructing the new mental health secure care centre on the Stobhill site (Rowanbank Clinic) and is also contributing to the city's position at the forefront of cancer research through the construction of the new Beatson Institute facility at Garscube.

ENDS

Enquiries to:

Tim Sharp, Director of Corporate Communications
Tel: 020 7216 6884
www.balfourbeatty.com

Notes to Editors

  1. Balfour Beatty Construction, has annual revenues of over £600 million and is a leading specialist in major public building works. Amongst its current project portfolio is the £125 million Blackburn Hospital, the £553 million Birmingham Hospital and schools schemes in Stoke, Rotherham, Bassetlaw, Birmingham and North Lanarkshire with a combined capital value of over £500 million.
  2. Balfour Beatty is the PFI concession holder for five major acute hospitals, namely, the University Hospital, North Durham, the Edinburgh Royal Infirmary, University College London Hospital, Queens Park Hospital Blackburn, and Birmingham New Hospital. It is also preferred bidder for the schemes at Pinderfields and Pontefract in Yorkshire and the Northern Batch
    project in Manchester.
  3. In the Glasgow schools sector, BBCL is currently carrying out the design and construction contracts for new primary schools for Glasgow City Council.
  4. In support of the private sector in Glasgow BBCL are prominent in the city's International Financial Services District where we are on our third consecutive contract for developers Wilson Bowden, the design and construction of a new office block at Atlantic Quay whilst at the same time work progresses on the redevelopment of 110 St Vincent Street for the Scarborough Property Group, a landmark heritage building.
  5. Balfour Beatty is a world class engineering, construction service group which works in partnership with a sophisticated customer who require the highest levels of quality, safety and technical expertise and for whom organisation, quality, efficiency and reliability are critical.

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