Media Release / Date: 11th March 2015 /

NHS Dumfries and Galloway are delighted to announce they have reached financial close on the new acute district general hospital for the region. Preparation for construction will start right away on the green field site on the outskirts of Dumfries.

The new facility, set in stunning surroundings, will incorporate one hundred percent en suite single rooms, a combined assessment unit, theatres complex, critical care unit and out patients department, all of which represent new models of care that will accommodate the needs of patients living in Dumfries and Galloway, and will enable staff to deliver the best possible healthcare.

Jeff Ace, Chief Executive, NHS Dumfries and Galloway said:

“The complexity of the project is such that it’s taken us years of hard work to reach this milestone. We’ve succeeded only through the consistent support of the Scottish Government and the unstinting efforts of Julie White, our Chief Operating Officer, and her local project team. On behalf of the NHS Board I’d like to thank everyone who’s committed so much of their time and expertise to this project.

“We anticipate that our region’s new acute hospital will open to its first patients in the final quarter of 2017. In the meantime, we will continue to hold public and staff engagement events to showcase the design and to update on clinical redesign progress.”

Dennis O’Keeffe, NHS Dumfries and Galloway Project Director for the new hospital said:

“Reaching financial close represents a pivotal moment for the delivery of the new hospital. The deal struck with High Wood Health represents excellent value for money for the Board over the duration of the entirecontract that exceeds prior expectations. It incorporates an ambitious, innovative high quality design that is energy efficient, sustainable and adaptable and will enable the delivery of the Board’s new model of care. The deal will also bring with it numerous community benefits that include 150 new jobs entrants, 36 modern apprenticeships and a range of opportunities for small and medium businesses, boosting the local economy and contributing to economic regeneration.

“It has been a pleasure to partner with High Wood Health as our preferred bidder and together we have reached financial close in record time for a project of its scale and complexity.”

David Hunter, Bid Director for High Wood Health said:

“The journey to reach this milestone has been a fantastic example of collaboration between the NHS Dumfries and Galloway team, the hospital staff and end users, and the High Wood Health project team. The detailed work we have carried out together over the past few months has seen the completion of the clinical design and has paved the way for the delivery of a world class hospital; and an approach for construction that will ensure its positive impact upon the local community and economy.

“With financial close now achieved, High Wood Health and our partners are looking forward to progressing in earnest with the construction works on site – meaning the next phase in this landmark project can begin.”

Marlene Boyd, Serco's Scottish Health Account Director, said:

“We’re delighted that the project has reached this important milestone. Serco is thrilled to be working with Highwood Health and NHS Dumfries and Galloway, and to be providing the estates management service for this fantastic new hospital. We have award-winning teams delivering FM services at Forth Valley Royal

Hospital and Wishaw General Hospital and we are very much looking forward to being able to deliver the same high quality service at the new Dumfries Hospital.”

Health Secretary Shona Robison said:

“This is an exciting step forward for the new Dumfries Hospital and I’m pleased that work will soon begin on the £270 million project. The hospital will provide a brand new Emergency Care Department, a combined theatre complex for day surgery, endoscopy and surgical patients, and consolidated ambulatory care. These new facilities will transform healthcare in the Dumfries region, providing patients with the highest quality facilities in their local area.

“The Scottish Government is investing over £2 billion in Scotland’s health infrastructure over four years, to 2015-16, with this development being one of many that demonstrates the Scottish Government’s commitment to continually improving health services.”

The European Investment Bank (EIB), Europe’s long-term lending institution, has agreed to provide GBP 109 million for the new hospital with a 26 year loan that represents around half of the senior debt of the new hospital.

Jonathan Taylor, European Investment Bank Vice President said: “The European Investment Bank recognises that investment in new hospitals is essential to reflect Europe’s ageing population and ensure the highest-quality of medical care. Patients using Scotland’s newest hospital will benefit for years to come, hospital staff will use the latest techniques and local smaller companies will play a key role during construction. Europe’s long-term lending institution is fully committed to supporting investment that improves the quality of life of people living in Scotland and strengthens economic activity in the country. Support for the new Dumfries and Galloway hospital and the Royal Hospital for Sick Children last month follows recent EIB backing of new transport, education energy, water and telecoms infrastructure across Scotland.”

Kerry Alexander of Scottish Futures Trust said: “It is fantastic news to see a second significant hospital project in the NPD health programme move into the construction phase in 2015. The hospital is not only a significant investment in healthcare for the people of Dumfries and Galloway but will provide a great boost in opportunities for SMEs and apprenticeships for the local workforce.”

ENDS

Notes to Editors:

The project is one of five healthcare projects being procured under the Scottish Government’s Non Profit Distributing (NPD) model.

The Outline Business Case was approved in June 2013.

Enabling works commenced in January 2014.

Final detailed plans for the new hospital were approved by the local council in December 2014.

High Wood Health is a consortium of Laing O’Rourke and Aberdeen UK Infrastructure Partners (a fund managed by Aberdeen Asset Management).

High Wood Health is working with a number of specialist organisations experienced in collaborating with the NHS on major new hospital developments: international construction and engineering company Laing O’Rourke will build the hospital, which they are designing with architects Ryder Architects and NBBJ. Estate management specialist Serco will manage the estates aspects of the facility when it’s delivered.