MTH GROUP: MT Højgaard wins a new large project in Vejle

New psychiatric ward with a total value of about DKK 930 million will be built in a public-private partnership (PPP) with DEAS as the operational partner and the pension funds: PensionDanmark, PKA and SamPension as financing partners.

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The Region of Southern Denmark has chosen MT Højgaard and the collaborative partners of "Team OPP – Ny psykiatri Vejle" to build a new psychiatric ward closely connected to the hospital in Vejle. The ward will have 91 beds, plus eight beds in an emergency unit as well as a psychiatric outpatient clinic for children and young people.

The project consists of eight cluster houses gathered around common areas and recreational patios. The idea is to create an open and well-arranged project providing a contemporary, effective and flexible setting for the interdisciplinary collaboration around care for patients. The buildings will have two storeys with a total area of 17,000 m2 and will be ready for use before the end of 2016.

The contract implies that in collaboration with DEAS, MT Højgaard is to be responsible for the operation of the hospital ward for 25 years. The operation and maintenance agreement covers the maintenance of buildings and installations as well as exterior cleaning of the buildings and car parks, etc. This is to ensure constantly up-to-date buildings with a high operational level.

- This type of project fits really well with MT Højgaard as we will have the opportunity to think all competences of the Group into the project solutions – from project development, design and construction to current operation and maintenance, to the great delight of the customer. It secures a high quality in material, sustainable solutions, good operating economy and control of expenses for many years to come, says Erik Nielsen, Vice President, MT Højgaard.

The project is to be built as a public-private partnership (PPP) and is part of the agree-ment to participate jointly in future construction PPP projects that MT Højgaard and DEAS concluded with PensionDanmark, PKA and SamPension as financing partners in November 2012.

- MT Højgaard has, together with DEAS, been the front runner of the Danish PPP market since 2005 and is currently operating five projects. This is an indication that many local authorities and regions have become aware of the many advantages of public-private partnerships, and we continue to have a positive view of the future opportunities offered by public-private partnerships, says Erik Nielsen, Vice President.

For the MT Højgaard Group, the construction of the hospital ward totals about half of the project's current value of DKK 930 million, plus half of the income earned by the jointly-owned public-private company from operation and maintenance. The contract is expected to have a positive impact on MT Højgaard's revenue and profit for the duration of the project, but does not give rise to any changes to previously published expectations of the economic development. We expect the contract to be signed when the deadline for objections expires on 4 April 2014.

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