European backing for second Scottish hospital

European Investment Bank agrees to provide £109m for construction of new Dumfries and Galloway District General Hospital

The European Investment Bank (EIB) has agreed to provide £109m for the construction of a new district and general hospital in Dumfries.

The 26-year loan represents around half of the overall project cost and follows the news, in February this year, that the EIB would provide £83m to support the building of the new Royal Hospital for Sick Children in Edinburgh.

Across the UK it has supported investment in the new Royal Liverpool and Alder Hey hospitals, Southmead hospital in Bristol, and the Royal Stoke University Hospital. Future financing of the new Papworth Hospital in Cambridge and the new Midland Metropolitan hospital in the West Midlands is currently being examined.

Reaching financial close represents a pivotal moment for the delivery of the new hospital

“The European Investment Bank recognises that investment in new hospitals is essential to reflect Europe’s ageing population and ensure the highest quality of medical care,” said Jonathan Taylor, EIB vice president.

Once complete in 2018 the new Dumfries hospital will serve 150,000 people living in the south west of Scotland. Patients will benefit from the latest healthcare provision and en-suite single rooms that reduce the risk of cross infection and provide more dignity and privacy.

It will be built by Laing O’Rourke as part of a consortium also including Aberdeen UK Infrastructure Partners, Highwood Health, NBBJ, and Ryder Architecture, and is being implemented under the Scottish Government’s non-profit distribution model.

“Reaching financial close represents a pivotal moment for the delivery of the new hospital,” said Taylor.

Dennis O’Keeffe, NHS Dumfries and Galloway project director for the new hospital, added: “The deal represents excellent value for money that exceeds prior expectations. It incorporates an ambitious, innovative, high-quality design that is energy efficient, sustainable and adaptable and will enable the delivery of the board’s new model of care.

“It will also bring with it numerous community benefits including 150 new jobs, 36 modern apprenticeships, and a range of opportunities for small and medium businesses, boosting the local economy and contributing to economic regeneration."

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