Balfour Beatty lands £115m Scottish PPP

Balfour Beatty has made the cut for a £115m PPP hospital deal in Scotland.

The firm has beaten off Amec, its only remaining rival, and emerged as preferred bidder for the Fife Health Board's General Hospitals and Maternity Services project.

Earlier in the race, the client cut out a bid from Miller, the third contractor pitching for the scheme.

The centrepiece of the project is a 38,000m² extension to Victoria Hospital in Kirkcaldy to provide a new operating theatre and critical care facility.

Accident and emergency, plus acute wards are also part of the job.

Work on site starts in the new year, with the new buildings due to open in 2010.

The PPP concession will run for 30 years, with construction costs estimated to peak at around £115m.

[Contract Journal, 13 December 2006, p 1]