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19 January 2015

Royal Edinburgh Mental Health Hospital reaches financial close, UK

The £45.2M project to design, build, finance and maintain (DBFM) the Royal Edinburgh Mental Health Hospital has successfully reached financial close. Mott MacDonald is lenders’ technical advisor to Norddeutsche Landesbank on the scheme.

NHS Lothian is redeveloping the Royal Edinburgh Campus as part of the hub South East Scotland programme. Over the next 10 years, outmoded inpatient facilities at the campus will be replaced. The first phase includes new state-of-the-art facilities for acute mental health care and intensive psychiatric care. The 15,500 sq m single storey building will replace the current adult acute and older people’s mental health service units and will be located on the western edge of the existing Morningside campus. It will provide 185 beds for patients requiring psychiatric care or mental health services, as well as those with specialist brain injuries.

Mott MacDonald’s due diligence included reporting potential technical issues and commercial implications arising from the DBFM agreement and schedules. This comprised the service level specification and payment mechanism, the engineering, procurement and construction contract and the facilities management agreement. The consultancy also reviewed the design solution, construction planning and operations methodologies proposed, capital and operating expenditure and lifecycle costing. Mott MacDonald will now provide construction monitoring services.

Mark Bourke, Mott MacDonald’s project director, said: “We are delighted to have assisted Norddeutsche Landesbank in the closing of the project and look forward to supporting the delivery of the Scottish Futures Trust’s £2bn countrywide hub initiative over the next decade.”

The Royal Edinburgh Mental Health Hospital is expected to be operational by the end of 2016. 

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