OHL, chosen bidder for the new hospital at the University of Montreal (CHUM)

The consortium made up of OHL (25%), the British investment fund Innisfree (30%), British construction firm Laing O’Rourke (25%) and French utility company Dalkia (20%), is called Collectif CHUM and has been appointed preferred bidder of the concession contract for the design, construction, financing and operation of the new University Hospital of Montreal (CHUM), in the province of Quebec, Canada.

The construction will be carried out by the consortium led by OHL, with 50%, and with Laing O’Rourke as a partner. The approximate budget is about 2,000 million Canadian dollars (roughly 1,485 million euros).

The net present value of the consortium’s final financial offer is below the 2,089 million Canadian dollars (about 1,550 million euros), which was the limit set by the administration of the province of Quebec.

The duration of the concession contract is 38.5 years. Once the standard procedures regarding the tender documents have been completed, signing of the concession contract is expected to take place in May.

The project financing is structured through a bond issue of 1,400 million Canadian dollars (some 1,022 million euros), significant operation in the Canadian market, which is guaranteed by the Royal Bank of Canada (RBC).

The future hospital, to be built from scratch with a total area of 332,652 metres squared, is situated in the city centre next to the historic district of Montreal. It will replace the existing St-Luc Hospital.

The project consists of five buildings: the main one, which includes 772 single rooms, the operating theatres, accident and emergency, sterilization centre, radiology, radiotherapy and other services; the outpatient building, which includes outpatient clinics and the power station; the office building; the logistical support building, which also includes the central pharmacy and laboratories; and auditorium, surrounded by an open public space and with underground parking.

All buildings will be connected to each other at different levels or through tunnels. Construction of the new hospital will be in two phases, maintaining the services of St-Luc Hospital.

In a project of this size, OHL is exporting to Canada their experience, both in the construction of hospitals and in the structuring of financing in infrastructure concessions.