A redevelopment of the existing Royal Women's Hospital (RWH) in Carlton has been under consideration for at least a decade.
In October 2003 the State Government of Victoria announced the construction of a new RWH, to be located on a site next to the Royal Melbourne Hospital in Parkville. The building was to accommodate the RWH, Frances Perry House (a co-located private hospital), consulting suites and teaching and research facilities for medical clinicians.
The new hospital is intended to be one of the southern hemisphere's leading women's hospitals, delivering accessible, effective and high quality services to Victorian women and their newborn babies.
The hospital redevelopment has been procured and delivered as a public private partnership (PPP) in accordance with the state's Partnerships Victoria framework1.
The Partnerships Victoria procurement model involves a partnership between a private sector consortium responsible for design, building, financing, and maintenance. The public sector has full responsibility for the clinical services within the hospital.
The government committed $250 million in capital funds to the redevelopment of the new hospital, with $60 million of those funds originally expected to be provided from the disposal of the existing RWH property assets after commissioning of the new hospital.
Over the 25 year operating phase of the contract-which commences after construction of the facility is complete and the hospital is commissioned-the state will make total payments of $1 073 million in nominal terms to the private sector project company. According to the 2006-07 RWH annual report, this was equivalent to $421.5 million in net present value terms at 30 June 2007.
1 Published at <www.partnerships.vic.gov.au>.