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Talks ongoing about future scale of PEH project

Talks ongoing about future scale of PEH project

Friday 27 January 2023

Talks ongoing about future scale of PEH project

Friday 27 January 2023

It is too early for Health and Social Care to say whether it will scale back its hospital modernisation plans after it was revealed the second phase would cost £15million more than expected.

Policy & Resources President, Deputy Peter Ferbrache told the States on Wednesday that his committee had delayed approving the work, due to start next year, after learning of the increases because it wanted to know the outcome of the tax review debate.

HSC could be asked to come back to the States with the project.

Phase One is already under way with HSC confirming that part of the project was still ‘on time and on budget’ so will be delivered within the £32.5m. total costs agreed.

“Production of the Phase Two design has allowed the estimated costs to deliver the works, should they be approved in due course, to be updated using the latest market indices (i.e. construction market costs as they stand in Quarter Four 2022),” said an HSC spokesperson.

“Following this process, HSC reported to P&RC in December that the estimated costs to progress the Phase Two works, which reflect the design required and the impact of pressures such as inflation would likely be c.£15m higher than the estimate previously produced in 2021 (reflecting costs as they were at that time).  

“As HSC is still in discussion with P&R regarding the scope of works and likely costs, it is not able to provide detailed information with  regard to total estimated Phase 2 costs at this  time. Nor would it do so ahead of any formal tender exercise.”


Pictured: The PEH plans.

Phase two includes a three-floor extension to be built where the main entrance is, an outpatients facility, a new women's and children's ward, new private patients ward and new orthopaedic facilities, a refurbished and extended theatre suite, a new admissions and discharge unit and an extended Emergency Department. 

“As directed by P&R in recent correspondence to all committees, all prioritised workstreams are being reviewed and assessed against specified criteria. It is too early to comment formally on this process and whether plans will be reassessed, scaled back or progressed ‘as is’,” said the spokesperson.

“Full and accurate cost estimates are a key element of the process to develop Business Cases and a critical component in terms of any final decisions that are made to progress them. As such, the Our Hospital Modernisation programme is following best practice and providing the most accurate financial information for the likely capital costs that will be incurred for Phase Two whilst the process of political consideration in respect of it continues."

When it was proposed in March 2019, the entire modernisation project was expected to cost between £72.3m. and £93.4m. over 10-years.


Hospital project's next phase paused over cost fears

PEH plans in

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Plans progress for PEH modernisation

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