Contracts agreed and works to start on major new hospital

Construction of a major new healthcare facility in Edinburgh is set to start after the financial contracts were agreed.

The exciting news follows the approval of the Full Business Case by the Scottish Government and Financial Close for the project.
The new £150 million co-located building will see services from the Royal Hospital for Sick Children, Department of Clinical Neurosciences and Child and Adolescent Mental Health Service brought together in a modern and high-quality setting at Little France.
Construction works will start over the course of the next few weeks and the new building, which will adjoin the Royal Infirmary of Edinburgh, is anticipated to open in autumn 2017.
The six storey building (including basement) will have a large atrium with a shop and café, a stunning skylight linking both hospital entrances, a helipad on the roof and a link building adjoining adult and paediatric emergency departments.
It will also bring with it an increase in single rooms with ensuite facilities and a range of new technology.
Health Secretary, Shona Robison, said: “This is a momentous date for this project and I’m personally very pleased that work will soon be about to begin on the new co-located Royal Hospital for Sick Children and Department of Clinical Neurosciences.
“The new development brings paediatric care, specialist neonatal care, neurosciences and adult and children’s emergency departments all together in one place, making access to services much easier for patients and health professionals alike.
“The Scottish Government is investing over £2 billion in Scotland’s health infrastructure over the spending review period, with this development being one of many that demonstrate the Scottish Government’s commitment to continually improving health services. The investment in this development will ensure the hospital campus at Little France can continue to develop as a modern hub of research and medical practice.”
Susan Goldsmith, Finance Director, NHS Lothian said: “We are delighted to have reached this point and now look forward with anticipation to seeing the new facility taking shape over the coming years.
“This is an extremely exciting time in the proud history of the Royal Hospital for Sick Children, along with the Child and Adolescent Mental Health Service and Department of Clinical Neurosciences, which will find a high-quality new home at Little France from 2017.
“The building designs have been heavily influenced by staff, patients and families and, in addition to offering a modern, light and spacious environment, will also enhance the clinical services we deliver.” 
Mark Bradshaw, IHS Lothian and Macquarie Capital said: “We are excited that construction will soon start on The Royal Hospital for Sick Children and Department of Clinical Neurosciences. This state-of-the-art facility will allow the delivery of quality healthcare services to the people of the Lothian region and beyond for decades to come. 
“It has been a pleasure to partner with the Lothian NHS Board and the Scottish Futures Trust to develop an innovative and competitive financing structure that will ensure value for money over the next 25 years.”
Peter Reekie, Scottish Futures Trust, deputy chief executive and director of investments said: “This is a fantastic deal for NHS Lothian and its partners, bringing investment into the Lothians and allowing construction to start on a great new building which will support many hundreds of jobs as it is built.” 

Some of the key benefits that the new facility will bring include;

  • 233 beds and 10 theatres. 154 beds in the Royal Hospital for Sick Children, 67 beds in the Department of Clinical Neurosciences and 12 beds in the Child and Adolescent Mental Health Service.
  • 11 beds will be added to the critical care department within the Royal Infirmary of Edinburgh.
  • The specifically designed family hotel will mean that the experience for families whose child has to spend time in hospital is more homely.
  • Conjoined children’s and adult Emergency Departments will mean that the most appropriate services are available to teenagers who currently do not always fit well into either service.
  • Patients in the Child and Adolescent Mental Health Service suffering from physical illness and mental health problems will benefit from the immediate availability of both specialities.
  • The Department of Clinical Neurosciences will make neurology and neurosurgery available to all age groups on a single site, meaning potentially quicker treatment is available. One advantage will be that patients who present to the Emergency Department at Royal Infirmary of Edinburgh and who subsequently turn out to need neurosurgery will no longer need to be transferred to the Western General Hospital.
  • The most modern imaging equipment within the Department of Clinical Neurosciences along with its adjacency to the Anne Rowling Regenerative Neurology Clinic and the Clinical Research Imaging Centre will allow the Department of Clinical Neurosciences to further enhance its position as a leading clinical and academic neurosciences centre.
Notes to Editors
  • Financial Close is the stage in the financial agreement where conditions have been satisfied or waived, documents executed, and draw-downs become permissible.
  • The project is the first acute hospital facility to be procured under the Scottish Government’s Non Profit Distributing (NPD) model.
  • Enabling works (including road works, bus stop relocations, sewerage works and service diversions) to prepare the Royal Infirmary of Edinburgh site at Little France for the new building have been ongoing since summer 2013.
  • IHS Lothian consisting of Macquarie Capital as sole sponsor and exclusive financial advisor, Brookfield Multiplex (Design and Build Contractor) and Bouygues E&S (Facilities Management provider) were appointed as the preferred bidder for the site in March 2014.
  • Planning permission for the project was granted by the City of Edinburgh Council in August 2014.