UK developer Balfour Beatty has been named selected bidder for two new acute care hospitals in Vancouver, British Columbia of Canada.
The 30-year public-private partnership (PPP; P3) project on behalf of the Vancouver Island Health Authority will cover the financing, design, construction, and facilities management for the Campbell River Hospital and Comox Valley Hospital. The deals are worth a total of C$600 million (€407 million; $552 million), according to reports.
“The Canadian healthcare market is a new and growing market for us and we are very pleased to be the selected bidder for our second project there this year,” said Steve Marshall, Balfour Beatty's executive chairman. “The potential of the North America market is substantial and this latest project is further evidence of how we are combining our financing, development and construction expertise to deliver great value to our clients.”
Balfour Beatty is expected to invest C$17.2 million into the project, which represents 50 percent of the equity required. Its joint venture partner Graham Group will undertake the construction and Balfour Beatty will be responsible for the delivery of soft facilities management services.
Both companies are currently working with the Vancouver Island Health Authority to finalise financing and other aspects of the project, Balfour Beatty said in a statement.
The transaction marks the second major healthcare development for Balfour Beatty in British Columbia this year. Last April, Balfour Beatty Investments, as part of the Affinity Partnerships consortium, sealed a C$350 million ($322.08 million, €237.93 million) financing package for BC Children’s & BC Women’s Redevelopment Project (Phase 2). Under the PPP contract, the company is to provide financing, construction and facilities management services over a 30-year concession period.