PFI Project

Kier Group PLC
5 March 2001


Scotland's first PFI hospital handed over


Kier Group has reached a significant stage with its major PFI project in
Scotland - three months early.  

On Wednesday (28 Feb), HDGH, a joint Kier Group/Innisfree company, handed over
Scotland's first major PFI hospital to Lanarkshire Acute Hospitals NHS Trust -
three months ahead of schedule.  

The new hospital, which has 364 inpatient beds and 52 day beds, is in East
Kilbride and was completed under a £67.5m design & build contract by Kier
Build, the major projects arm of the Kier Group, and is now being made ready
to admit its first patients later this month.  This is the first PFI hospital
to open in Scotland.

Kier Group chairman Colin Busby commented:  'When the concession to design
build and finance the hospital was awarded in April 1998, we saw this as our
chance to show how effective the PFI route is.  The quality of the finished
building speaks for itself and is a credit to all involved with its delivery -
three months ahead of schedule.  We are proud to have been chosen to deliver
this new facility for the people of East Kilbride and to have demonstrated how
successful the PFI delivery route can be.'

The concession, which will also operate and manage non-clinical support
services, has a projected value of £644m over 30 years. Kier Group plc owns
50% of the concession, investing £4.2m in equity and subordinated debt.

5.3.01