Prospect Healthcare, a consortium comprising Kier Group and equity investor
Innisfree Ltd, (each with 50%) has been named as preferred bidder by West
Berkshire Priority Care Service NHS Trust to provide a new £25m hospital for
Reading.

The consortium will build and run the non-clinical services of the hospital over a 30 year concessionary period in a project worth £180m. Kier's major projects arm, Kier Build, is to construct the new 203 bed hospital at Prospect Park in Reading, with work due to start on site later this year and completion scheduled for 2002.

The win is Kier's third major PFI healthcare contract, following the company's success at Hairmyres and East Kilbride in Scotland. In Wales a Kier led consortium is delivering the Baglan Moor PFI hospital with Caxton FM, Kier Group's facilities management arm, providing non-clinical support services under a £160m contract.

Richard Byatt