Forecast Hospital relocation costs almost double – to £80 million

But the overall future hospital project is still expected to be completed within its £466 million budget.

According to the Future Hospital Outline Business Case, the current predicted cost of relocation works – such as moving certain departments within the hospital or to external facilities – is more than £80.3 million.

Last year, when building on the current site was first proposed, the estimated cost of relocation was just over £44 million.

A Health Department spokesman said the £36.2 million rise in costs was a result of a variety of factors, which comprised:

  • An extra £17.1 million (accounting for 47% of the rise) for changes to Westaway Court, a building opposite Parade Gardens currently used as medical staff accommodation. A new building there will house outpatient services including a pathology lab that will be connected to the Hospital by pneumatic tubes.
  • An extra £5.6 million (15% of the rise) to pay for a larger than previously planned temporary clinic block that will house more critical services. It is due to be built next to the part of the Hospital that will stay in place until 2024, when the new hospital is opened.
  • An extra £3.3 million (9% of the rise) for the addition of two new levels to Patriotic Street car park.
  • An extra £2.9m (8% of the rise) for education facilities and offices for Health Department staff that will be moved from Peter Crill House, which runs adjacent to Gloucester Street, during the construction period.
  • The remaining £7.3 million (21% of the rise) includes the cost of housing junior doctors at The Limes, equipment that will be used in both the interim hospital and the new building and ‘various changes to the relocation projects to maintain the safe operation of the interim hospital during construction’.

The Health spokesman added: ‘The overall forecast cost remains unchanged at up to £466 million. Such cost changes are normal as the design and construction of a complex project evolves, as part of the ongoing aims of ensuring the best balance between time, cost and value, and maintaining the budget.’

The funding proposal report, which was published earlier this week, shows the forecast cost of the main hospital is now about £385.5 million. Last year it was predicted to be £421.8 million.

Treasury Minister Alan Maclean plans to borrow up to £275 million to fund the project. Current plans involve taking the rest of the money from the Island’s Strategic Reserve – the so-called rainy-day fund. The funding proposals are due to be debated on 12 December.

It is anticipated that the new hospital will be ready by March 2024.

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