A solution to the stalled construction of the new £335 million Royal Liverpool Hospital has been welcomed.
The Royal Liverpool Hospital Trust has announced it will terminate its private finance initiative (PFI) after the 30 September ‘long-stop date’.
In a statement, the trust says the collapse of the project’s contractor Carillion created an “unprecedented situation with numerous complex legal and commercial issues”.
Yesterday (26 September), the trust’s board of directors agreed that construction could not restart within the existing PFI agreement and that this agreement should be terminated after the 30 September ‘long-stop date’.
Subject to government approval, and legal agreements being finalised, the benefit of the analyses and pre-works discussions by the lenders will be transferred to the trust.
This process will see the Hospital Company hand over its contracts for construction, supply chain and facilities management, to the trust, over the course of the next few months.
The trust statement adds: “This is now the fastest way in which we can see construction on the new Royal restarted and means we have outlined a process for doing so.
“This is really positive news for our staff, patients and the people of Liverpool.
“We now have a solution and can work on moving forward.”
Earlier this month, the trust announced that some of the cladding on the unfinished hospital does not meet fire safety standards.
A report from Arup identified the requirement for “further improvements to the structure and to cladding”.