Yesterday, 20 December 2018, the latest NHS Greater Glasgow and Clyde healthcare PPP reached financial close. The DBFM healthcare project will procure two new facilities (the new Greenock Health Centre and Mental Health In-patient facilities at the Stobhill Hospital) from hub West Scotland under a single hub/DBFM contract. Under current plans, a third facility will be added to the contract under a pre-agreed change procedure during 2019.
We supported the NHS in-house team and were responsible for a range a financial transaction support activities including assessing financial submissions from the private sector partner, confirming that returns, margins and fees are consistent with benchmarks and confirming that the financial model is consistent with technical project details. On the day of financial close we supported rate benchmarking, financial model optimisation and completion activities.
As financial transaction advisers to Scottish Borders Council on their Jedburgh Intergenerational Campus project, we are pleased to report that Financial Close was achieved on 25 October.
The new £32 million education campus will replace three existing schools in the town and will include #nursery, #primary, #secondary, and further educational facilities.
The project is being delivered in partnership with hub South East Scotland using the standard Scottish PPP/DBFM structure, and achieved financial close 13 months after the business case (known as the New Project Request) was approved.
This successful project continues our relationship with the Council, having previously advised them on the development of the new Kelso High School which achieved Financial Close in February 2016 and which opened on time and budget in November 2017.
The Glasgow City Council procurement of the new Blairdardie and Carntyne primary schools reached financial close on 23 October 2017, and the first of the schools, Carntyne, was handed over on time and budget on 19th October 2018, with Blairdardie on target for hand over on time in February 2019.
The new primary schools have been developed under a single compact PPP contract between the Council and hub West Scotland.
As the public sector Financial Transaction Adviser on this PPP we supported the Council’s in-house team and were responsible for assessing financial submissions from the private sector partner. This included confirming that returns, margins and fees are in line with the market and consistent with pre-agreed levels. We worked closed with technical specialists to calibrate the payment mechanism, and supported commercial negotiations.
Our appointment as Transaction Financial Advisers by Aberdeenshire Council on the procurement of a replacement for Inverurie Academy and Community Campus came to a successful conclusion when financial close was achieved on 19 April 2018.
This is our second such appointment by the Council, having previously supported the procurement of Alford Community Campus which opened its doors to pupils for the first time in October 2015.
Photograph credit hub North Scotland
Both new schools were procured with our support from hub North Scotland under the hub/DBFM/PPP structure. They will variously serve pupils in early years (#kindergarten), primary and secondary education and include a range of community facilities such as theatre, sports hall, swimming pool, community library and dance studio, with all-weather and grass playing fields.
We are very pleased to have supported Angus Council on the procurement of replacements for Muirfield and Ladyloan Primary Schools in the coastal town of Arbroath, which reached financial close on 24 November 2017. The new schools are being developed under a single Design-Build-Finance-Maintain contract with hub East Central.
Each school will have a capacity of approximately 335 primary pupils and 72 pre-school pupils.
We supported the Council’s in-house team in confirming that financial submissions from the private sector partner are within the various limits set by the Territory Partnering Agreement and we worked closely with the financing partners to achieve a successful financial close to the project.
This continues our long relationship with Angus Council which including supporting the initial feasibility study, and subsequently acting as transaction advisor, for the Forfar and Carnoustie schools PPP.
We have been reappointed to provide financial advisory support to Dumfries and Galloway Council for the operational phase of the Smarter Schools PPP project.
Stranraer Academy, refurbished and extended
This project was signed in 2008 and all eleven schools were operational by 2010. The project was financed by a £127 million facility provided by HSBC and the European Investment Bank.
This reappointment continues our long relationship with the Council which spanned the project business case, tender preparation and evaluation, financial close, and project effectiveness assignments during the operational phase.
Caledonian Economics would like to congratulate NHS Orkney, Robertson Capital Projects and the project team on reaching financial close and signing the contracts for the New Orkney Hospital and Healthcare Facility.
With colleagues from QMPF we have been working with NHS Orkney for several years to support the business case and subsequent procurement under a variant of the Scottish PPP/NPD model.
The new Rural General Hospital will have 49 inpatient beds covering acute, cancer & palliative care, maternity and rehabilitation and will host a variety of services including two GP Practices, Dental and support services. When it opens in 2019 it will provide a state of the art modern building which will enhance the services staff can offer, utilising technology and the improved facilities.
More details here: http://www.ohb.scot.nhs.uk/new-hospital-and-healthcare-facilities
This continues Caledonian Economics’ long association with Orkney, having previously supported Orkney Islands Council on the procurement of the new Kirkwall Grammar School and Theatre, Pickaquoy Leisure Pool and Stromness Primary School, using a unique variant of the PPP structure.
Infradeals published their 2016 and Global PPP and Infrastructure advisor league tables in January.
With 11 signed deals at a value of $453 million, Caledonian Economics ranked first Financial Advisers to the public sector side of social infrastructure deals.
West Lothian Council’s procurement of the new West Calder High School from hub South East reached Financial Close today, 14 December 2016.
This is the eleventh such Financial Close using the Scottish hub/DBFM PPP financing model that Caledonian Economics has advised on this year.
The new high school building has been designed to meet modern access requirements and support inclusion of pupils with additional learning needs in line with the ‘presumption of mainstream’.
The new location will enable greater community access to the very high standard of facilities, particularly physical education facilities for community use outwith core school hours.
We would like to congratulate NHS Grampian on achieving Financial Close (on 5 December 2016) with hub North Scotland Ltd on the project to build new health centres in Inverurie and Foresterhill (Aberdeen) using the hub/DBFM/PPP structure.
The total construction cost of around £22 million will be funded by institutional debt from Aviva, and subordinated debt from Currie & Brown Equitix, Galliford Try Investments, NHS Grampian, the Scottish Government and the Hub Charitable Foundation.
We advised NHS Grampian throughout the procurement up to and including financial close. Our responsibilities included assessing the financial submissions from the private sector partner, confirming levels of private sector returns, margins and fees, payment mechanism calibration, and support of commercial negotiations.
The Foresterhill Health Centre is being built within the site of Aberdeen General Hospital, adjacent to the Anchor Cancer Care Centre. It proximity will allow excellent liaison between Primary care and specialist services.
Inverurie Health Centre is home to the largest single General Practitioner practice in Scotland with around 21,000 registered patients, projected to rise to 30,000 by 2021. The new health centre will be a major improvement on the existing facility. At around 3,500 square metres, it will have space to incorporate community health services such as dental and community maternity provision. There will also be an energy centre as part of the development.