Carillion reaches close on £1.7bn Canada PPP
Carillion's joint venture in Canada, Hospital Infrastructure Partners, has reached financial close on a £1.7bn PPP hospital.
The milestone has been reached two months after the JV was selected as preferred bidder by Infrastructure Ontario and Halton Healthcare Services.
The 30-year alternative financing and procurement contract works in a similar way to UK public private partnerships. The deal is worth £1.3bn at 2011 prices, adjusted to £1.7bn for price inflation over the contract period.
Carillion will invest £28m of equity in the project, giving it a 40 per cent share in the JV. Carillion's share of the JV's revenue will be approximately £500m over the life of the contract, at 2011 prices.
The company will also be a member of the JV that provides facilities management and life-cycle maintenance services over the 30-year period which, along with its part in construction, is expected to generate some £390m of revenue for the company at 2011 prices.
