Key facts

 

Midland Metropolitan

Royal Liverpool

The project

669-bed hospital in Sandwell, West Midlands, replacing two existing hospitals

646-bed hospital in central Liverpool to replace the existing hospital

Expected benefits

Modernised services in a single site acute hospital

Reduced risk to services from current hospital's poor condition, meeting changing healthcare demands

NHS Trust

Sandwell and West Birmingham Hospitals

Royal Liverpool and Broadgreen University Hospitals

Original opening date

October 2018

June 2017

Status when Carillion collapsed in January 2018

Around two-thirds complete, structure largely built

Construction and fit-out almost complete

PFI termination

No payment to lenders

£42 million payment to PFI lenders

Procurement of contractor to replace Carillion

Bidding process under public procurement rules, only one bidder

No public procurement process. Main contractor appointed by the PFI company, transferred ('novated') to the Trust

Delay until major work recommenced

22 months

18 months

New contractor

Balfour Beatty Construction Limited

Laing O'Rourke

Current forecast opening dates

July 2022, 3 years and 9 months late

Completion planned for autumn 2022, more than 5 years late. Opening date not yet set

Key risks remaining to the Trusts

Balfour Beatty has agreed a target price for finishing the hospital, but the Trust will pay for any unforeseen costs arising from problems with Carillion's work

There is no cap to the price of the remaining work, the scope of which is being finalised, and there are risks of further cost rises and time delays

Original expected cost to build and run

£686 million

£746 million

Current expected cost to build and run

£988 million (+44%)

£1,063 million (+42%)

Of which, amount public sector will pay

£709 million (+3%)

£739 million (-1%)

Estimated losses on the projects borne by private sector

£279 million

£324 million