The European Investment Bank (EIB) is lending GBP 149 million for the redevelopment of hospital services at the two main sites of the St Helen's and Knowsley Hospitals NHS Trust (the Trust), St Helen's and Whiston. The project entails a major expansion and redevelopment of the existing Whiston Hospital in Knowsley, putting all clinical facilities in new buildings; and the rebuild of St Helens Hospital to create an elective and intermediate care facility, incorporating a Diagnosis and Treatment Centre.

The works will be carried out under the terms of a Concession Agreement between New Hospitals (St Helens and Knowsley) Limited (the Concessionaire) and the Trust. Under the terms of the agreement the Concessionaire will also be required to maintain and provide facilities management services at the hospital sites for the duration of the concession.

The project will take the form of a Public Private Partnership (PPP). By implementing the project as a PPP project the UK Government expects to reduce the costs of procuring and operating the hospitals over their lifetime, as a result of both increased efficiency in facilities management and the transfer of construction and design risk to the private sector.

EIB funds will be provided to the Concessionaire, a special purpose company owned by Innisfree and Taylor Woodrow Construction Limited. Taylor Woodrow will design and construct the re-developments of the hospitals and provide hard facilities management services.

The project will be financed from a combination of senior bonds and the loan facility provided by European Investment Bank (both index-linked), together with junior subordinated loan stock and ordinary shares provided by the shareholders. Financial Security Assurance (FSA) will guarantee the scheduled payments of principal and interest under the Index-Linked Bonds and the EIB Loan.