Consortium closes £432m hospital deal

Financial close has been reached on south Wales's £432m private finance initiative hospital scheme at Baglan Moor.

The four members of the consortium, which will be building and operating a new hospital facility for the Bro Morgannwg NHS Trust over a 27.5 year concessionary period, are: construction group Kier; specialist healthcare designer SSL; main contractor Tilbury Douglas, and Charterhouse Project Equity Investments. The consortium members are putting up 10% of the £74m construction and financing costs and securing the rest from index-linked bonds provided by Greenwich NatWest. Kier's Cardiff-based facilities management subsidiary Caxton will be providing non-clinical support services under a contract worth £160m.

The new hospital will include 270 beds, day hospital facilities and a mental health unit.