Department of Health and Social Care written question – answered at on 2 February 2018.
To ask the Secretary of State for Health and Social Care, if he will estimate the value of the Carillion contract at the Royal Liverpool hospital; set out how progress on the contract was monitored; state whether the contract was on budget before Carillion was liquidated; and estimate the overall cost of completing the project.
Carillion is part of a Private Finance Initiative (PFI) consortium currently contracted by Royal Liverpool and Broadgreen University Hospitals NHS Trust to undertake construction of the new Royal Liverpool hospital as part of the £429 million project for the overall redevelopment of the trust’s sites.
Individual NHS trusts, as the direct counterparties to PFI contracts, are responsible and accountable for the monitoring of the contract. Under a PFI contract, the PFI consortium raises the finance and manages the budget and cashflow for the construction works; the NHS trust does not start paying the full costs of the project until it is completed.
The PFI contract between the Royal Liverpool and Broadgreen University Hospitals NHS Trust and the PFI Project Company is still in place, which means that the Company is still contractually obliged to manage the project and find a construction firm or subcontractor who can continue the building work. This is important for the trust and also an incentive for the PFI Project Company to minimise delay.
The Royal Liverpool Hospital scheme is very well advanced. The PFI Project Company is currently in discussions with PwC (on behalf of the official receiver), their lenders and with other service and construction companies to assess how best to continue delivering these contracts.
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