Carillion wins £140m hospital PPP in Canada

Carillion has won a £140m deal to build and finance a hospital expansion in Ontario, Canada.

The project will double the size of the Royal Victoria Hospital in Barrie, a city which is a 45-minute drive away from Toronto.

John McDonough, chief executive, said: "Carillion has enjoyed success in the UK health sector and now we are building a portfolio in the healthcare market in Canada.

“Our contract will transform the services that the Royal Victoria Hospital can offer.”

The latest deal adds 40,000 m2 of new space, including a regional cancer centre.

Carillion has expanded its PFI-style capabilities into Canada already with two Public Private Partnership hospitals, one in Toronto and the other in Ottawa.

The latest project has been won following Carillion's acquisition of Vanbots, a Canadian construction management services group, four months ago.

The attraction of Vanbots was that it boosted Carillion's ability to provide fully integrated solutions, especially for PPP projects, and strengthened Carillion's position in the health sector in Canada.

Financing for the deal is coming from a string of banks including Norddeutsche Landesbank, National Australia Bank and Banco Espirito Santo de Investimento.

Construction work should all be done and dusted by the autumn of 2011.