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zugzwang

Osborne Announces New £353M Super Hospital In The West Midlands

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Happy Black Country Day! £100m from the taxpayer upfront and a few hundred million later when the private tranche can no longer be refi-ed profitably.

Bostin'.


http://www.bbc.co.uk/news/uk-england-birmingham-28289741

The Chancellor of the Exchequer George Osborne has announced approval for the 670-bed Midland Metropolitan Hospital to be built on land in Smethwick.

The building will be funded by both the public and private sector through a private finance deal, he said.

It will replace large parts of Sandwell Hospital and City Hospital in Winson Green, although some services will remain, NHS managers have said.

Mr Osborne said: "This ambitious package will ensure that patients across the West Midlands continue to benefit from access to world-class acute treatment and cutting edge facilities."

Construction work on the hospital is expected to begin on a site at Grove Lane in Smethwick in 2016 and finish in 2019.

Sandwell and West Birmingham Hospitals NHS Trust said it had begun the process of looking for a construction partner to build it as part of the governments revised private finance initiative (PFI) scheme.

Under PFI 2 guidelines the taxpayer takes a share of up to 49% in new projects with the rest coming from private investors.

The Trust said £100m of public money would be used to build the new hospital.

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I assume the PFI deal will actually contain risk to the private partner?

And that it won't be more expensive then simply putting it on the never never deficit?

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Under PFI 2 guidelines the taxpayer takes a share of up to 49% in new projects with the rest coming from private investors.

It's a pity we couldn't afford the extra 2% for the controlling interest?

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