28 Apr 2005

Interserve Plc and its partners, Equion Ltd and the Commonwealth Bank of Australia, have secured the PFI contract for the Royal Victoria Infirmary and Freeman Hospital awarded by the Newcastle-upon-Tyne Hospitals NHS Trust. Construction, refurbishment and facilities management (FM) services in the contract, which will provide a total of 926 beds, are valued at £430 million.

Interserve will deliver FM services estimated at £130 million in the new buildings created in the scheme over a period of 38 years. There will be a phased ramp-up of services beginning immediately with full service provision anticipated for 2013 when the final elements of the Royal Victoria Infirmary are in place.  Work will include mechanical and electrical maintenance, building and civil engineering, grounds maintenance and the provision and operation of a helpdesk.

Interserve will employ around 60 people on the contract working in conjunction with the Trust's staff who will provide other operational services. Interserve Investments will invest £4.9 million in the contract, representing 20% of the sub-debt and equity.

Adrian Ringrose, Chief Executive of Interserve commenting on the contract said,
"We are proud to be associated with this prestigeous development which will provide vital health services to the people of the north-east of England. Newcastle-upon-Tyne Hospitals NHS Trust is one of best healthcare providers in the country and we are delighted to be in partnership with them."

Interserve currently works with a number of hospital trusts in England including North Cumbria Acute Hospitals NHS Trust, University College of London Hospitals NHS Trust, Dudley Hospitals NHS Trust and Oxfordshire Mental Healthcare NHS Trust.