The South Australia Government announced the selection of the SA Health Partnership on Saturday, 11 December. The New Royal Adelaide Hospital (RAH) will be delivered as a Public Private Partnership (PPP) under the South Australian Government’s Partnership SA model.
The SA Health Partnership consortium, which includes Leighton Contractors, Macquarie Capital Group, Hansen Yuncken and Spotless, will undertake the financing, design, construction and facility management services to the hospital over 35 years, while SA Health will continue to operate the hospital and provide core clinical services. Following the signing of the contract and financial close of the deal, site works can start, with construction of the hospital beginning later next year.
Health Minister John Hill said. “The bidding process for the design and construction of the new RAH has been intense and the two bidding consortia included some of the most experienced finance, design and construction firms in Australia and indeed the world.
The other short-listed bidder was the Torrens Health Partnership consortium, including Bilfinger Berger Project Investments, Royal Bank of Scotland, Bovis Lend Lease Infrastructure Investments, Baulderstone / Bovis Lend Lease, ISS Health Services and Bilfinger Berger Services.
Premier Mike Rann said the new RAH will deliver state-of-the-art 21st century health care to generations of South Australians. “It will be Australia’s most advanced hospital and the single largest infrastructure project in our State’s history,” the Premier said.
The New Royal Adelaide Hospital is a key part of the South Australia Governments health care plan making this a landmark PPP project.
Infrastructure Partnerships Australia (IPA), the nation’s peak infrastructure body, says PPP’s have shown to deliver better value for money to taxpayers. The PPP model is used world-wide to deliver state-of-the-art hospitals and usually selected as it provides value for money due to a certainty about project long term costs combined with the opportunity to harnesses private sectors innovation and capital. It also offers cost saving over traditional government-delivered projects.
The New Royal Adelaide Hospital will be built on North Terrace, in the heart of the CBD. Construction is set to start in 2011 and the new hospital is scheduled to open in 2016. The hospital will replace the existing Royal Adelaide Hospital further along North Terrace which opened in 1840. On completion, the New Royal Adelaide Hospital will be the largest and busiest hospital in South Australia with 800 beds and 80,000 same-day and overnight admissions per year.
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