The Private Finance Initiative scheme was developed by the Government to fund major capital investments with the benefit of spreading the cost of these schemes over an extended period. Private companies who specialising in building, design, facilities management services and finance join together to bid for projects and through a process of presentations, working meetings and sharing of documents propose their solution in response to the Trust's brief.
The new hospital development is funded by a combination of loans, bonds and sponsor investment.
The sponsors who are investing in the project are Bovis Lend Lease (Holdings), Sodexho Investment Group and HSBC Infrastructure Limited.
Catalyst works with funding organisations to raise the money necessary to build the hospital in the form of loans and bonds. The Trust then pays a monthly payment to Catalyst over the next 38 years for the buildings and services that make up the project during the next few years - similar to the way house owners pay monthly mortgage payments to their mortgage providers. To help fund the scheme the Trust has also established a New Hospitals Development fundraising committee which is aiming to raise £20m to provide ‘extras' such as new accommodation for parents, specialist equipment and artwork.