Re Contract

Carillion PLC
22 December 2003



22 December 2003


Carillion reaches financial close on £700 million PPP hospital


A  joint venture between Carillion and the Royal Bank of Scotland has reached
financial close on the new John Radcliffe Hospital in Oxford.



The project is part of a complete reconfiguration of hospital services to
improve clinical facilities in Oxfordshire. The new facilities, which include
288 inpatient beds, will be built alongside the existing John Radcliffe Hospital
and will include a new purpose-built children's hospital.



Carillion expects to invest some £6.7 million of equity in the project over the
next few years. In addition, Carillion is building the new £135 million hospital
and will provide maintenance and  facilities management services in the
hospital, worth around £560 million over the life of the 33-year concession.
Construction has already started, with completion planned for December 2006.



Commenting, John McDonough, Carillion chief executive said: 'Health is one of
our major growth sectors and we are delighted at this further success -
Carillion's fifth PPP hospital. With three further major PPP hospitals and the
Birmingham & Solihull LIFT project at preferred bidder stage, we are positioned
to deliver strong and sustainable growth in our health business.'



Adrian Bull, managing director for Carillion Health said: 'Carillion is proud to
be associated with the Oxford Radcliffe NHS Trust and to be its chosen partner
in delivering healthcare services to its patients. We aim to enhance the John
Radcliffe Hospital's status as a landmark building for Oxford.



'In supporting the Oxford Radcliffe Trust, we will work to ensure the careful
integration of clinical and non-clinical services in order to deliver the best
standards of patient care.'





Note to editors



Carillion is currently the preferred bidder for a further six PPP projects in
which it expects to invest between £15 million and £25 million of equity as well
as generating construction and facilities management work worth around £1.8
billion for Carillion. These projects include the new Queen Alexandra Hospital
in Portsmouth, the William Osler Hospital and Royal Ottawa Hospital both in
Ontario, Canada, the Birmingham & Solihull LIFT project, the A249 highway
project and a social housing project in Derbyshire.



In the health sector, Carillion provides facilities management services to four
PPP hospitals in Dartford, Swindon, Glasgow and North Staffordshire as well as
providing FM support services at several other NHS Trusts.






                      This information is provided by RNS
            The company news service from the London Stock Exchange