KfW IPEX-Bank: GBP 68 million for new Birmingham super hospital

• First healthcare project to be backed by the new European Fund for Strategic Investments (EFSI)
• Financing provided together with EIB and two other banks

KfW IPEX-Bank has agreed to provide GBP 68m to support construction of the new Midland Metropolitan Hospital in Birmingham. Other banks involved in the financing are European Investment Bank (EIB) and two other banks.

This construction project is the first hospital to be supported by the new European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe, intended to generate EUR 315 billion of new investment across Europe.

The new hospital scheme, with total project costs of GBP 350m, includes 670 beds and 15 operating theatres, as well as a new public park, reached financial close following an agreement between the Sandwell and West Birmingham NHS Trust and developers Carillion. The new accident and emergency department will replace emergency care facilities at City Hospital and Sandwell and is expected to treat more than 140,000 patients a year.

"We are pleased to take part in financing the new Midland Metropolitan Hospital," said Christian K. Murach, responsible member of the Management Board at KfW IPEX-Bank. "The fact that this project falls under the EFSI/Juncker Plan illustrates just how important it is: investment in social infrastructure ensures social performance in the future. It helps revive investment activity in Europe while initiating strategic projects in the real economy."

Work on the new Midland Metropolitan Hospital is expected to start in 2016 and the new hospital in Grove Lane, Smethwick will bring together all acute services onto one site to provide state-of-the-art treatment and care for patients from Sandwell and across the region. This will lead to a merger of the current two Emergency Departments, at City and Sandwell Hospitals, on to the single site promoting better patient safety and patient experience.

Further Quotes on the Financial Close:

European Commission Vice President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: "Innovative social infrastructure projects, such as this new teaching hospital in Birmingham, is one of the key objectives of the Investment Plan for Europe. I'm extremely pleased that with a small amount of backing from the EU budget, the residents of Birmingham will benefit from improved healthcare and shorter waiting times."

“This is another landmark day for the people of Sandwell and West Birmingham, who now know for certain that their multi-million pound hospital will be built, and at a significantly lower cost than was originally planned. The outline business case in 2014 anticipated an annual unitary payment of £27m, however we have closed the contract with an annual unitary payment of under £20m. We are also pleased to have signed the contract some four months earlier than we aimed for, and look forward to the Midland Met being handed over in July 2018 and opening in October 2018.” said Richard Samuda, Chairman of the Sandwell and West Birmingham Hospitals NHS Trust.