News

07.06.18

New Birmingham hospital stalled by Carillion collapse loses over £100m in EU funding

Funding for the building of the Midland Metropolitan Hospital has been terminated by the European Investment Bank (EIB) following the collapse of lead contractor Carillion.

The EU bank had previously pledged the cash to be put towards the hospital in Smethwick, West Midlands in 2015, but now blamed “ongoing project costs” of £5m for pulling out.

Last week chief executive of Sandwell and West Birmingham NHS Trust Toby Lewis claimed that if the new hospital is not weather-proofed by winter, then ongoing costs could rise even further. Last month MPs found that the hospitals stalled by construction giant Carillion’s bankruptcy were a result of “recklessness, hubris, and greed.”

Lewis told the BBC today: “We have to work with the government and various partners to get this finished. We've got to find a financier and a builder by whatever vehicle government determines.

“We have been saying this hospital will open in 2022 for some time and the announcement doesn't change that.”

Credit Agricole, KfW IPEX, DZ Bank and Sumitomo Mitsubishi Banking Corporation had all contributed funds and now could lose a significant amount, the EIB said.

The collapse of Carillion meant the two-thirds built hospital was expected to require an extra £125m on top of its £350m original bill. But now, exposure to elements during the winter will add to the total bill, in addition to a two-year delay on the opening date of the hospital.

Sandwell Council will be discussing a report put forward by Lewis regarding the future of the hospital today.

Comments

There are no comments. Why not be the first?

Add your comment

 

national health executive tv

more videos >

latest news

View all News

comment

Sneak a peek into the world of risk

19/12/2018Sneak a peek into the world of risk

The Institute of Risk Management (IRM) asked its members what working in ri... more >
The NHS Assembly: A moment to reset

19/12/2018The NHS Assembly: A moment to reset

The development of the NHS long-term plan offers a reset moment: a chance t... more >

editor's comment

25/09/2017A hotbed of innovation

This edition of NHE comes hot on the heels of this year’s NHS Expo which, once again, proved to be a huge success at Manchester Central. A number of announcements were made during the event, with the health secretary naming the second wave of NHS digital pioneers, or ‘fast followers’, which follow the initial global digital exemplars who were revealed at the same show 12 months earlier.  Jeremy Hunt also stated that by the end of 2018 – the 70th birthday... read more >

last word

Hard to be optimistic

Hard to be optimistic

Rachel Power, chief executive of the Patients Association, warns that we must be realistic about the very real effects of continued underfunding across the health service. It’s now beyond more > more last word articles >

interviews

How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

24/10/2018How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

A dedicated national social care service could be a potential solution to s... more >

the scalpel's daily blog

Gentleness: an underrated quality in effective leadership

14/01/2019Gentleness: an underrated quality in effective leadership

Dean Royles, strategic workforce advisor at Skills for Health and co-author of ‘An Introduction to Human Resource Management,’ returns to write for NHE for hi... more >
read more blog posts from 'the scalpel' >

healthcare events

events calendar

back

January 2019

forward
mon tue wed thu fri sat sun
31 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3
4 5 6 7 8 9 10

featured articles

View all News