Stories from the last 7 days
Pilot care scheme is ‘exciting’ first for region Park fouling angers parents New councillor hits out at ‘age discrimination’ Suspension calls after parties make pact Concern for food bank donations after TV comments Teacher plans ‘hair raising’ assembly Moffat revels in red hot rally atmosphere Paddle perfect for first kayak day Warnings as kids ignore derelict factory security Unicorns flock to region for world record bid Concern commission hike will impact the arts Water warning to public in hot weather Queen of the South unveil signings Moffat, the new pie and mash capital of Scotland? Escaped alpaca caught by police Public enquiry to consider Whitesands flood scheme Gala season is go She’s got the golden touch Car chase motorist jailed Plucky Terri in abseil fundraiser Break in at pub Region stands with Manchester Elaine is new leader Fireraising at flat Twins get race honour Home victory for Bogie Palliative care consultation Party queen Bella still going strong at 95 Grandad’s recipe sees butcher made haggis king Home improvements firm enters liquidation Task force to tackle ‘death trap’ factory Couple celebrate both getting top Scout honours DJ beats the Bard in civic pride contest Music centres join forces to offer 5 star tuition First look at Butler film shot in region Corinne enjoys life on the ocean waves Banker delivers Duncan lecture Sisters set to launch Glasgow’s Race for Life Dumfries display for ghostly war horses Police probe ‘unusual’ theft of car bonnets Carmichael commits to Queens Donations for Dean Harry Otter and the forestry worker Building society to close Dumfries branch Stuart is Langholm Cornet Drop in votersSearch all stories »




Newsdesk: 01461 202 417 | Search
Change Language:

Read online with DnG Digital

Subscribe now to read all your favourite newspapers online

Final cost of new DGRI will be £533m

Section:  Dumfries and West

A £533 MILLION total cost has been placed on the construction and maintenance of Dumfries’ new hospital over 25 years.


The total cost is revealed amid concerns over financial strains being created by controversial private finance contracts — but is well below the £700 million originally envisaged when the go-ahead was given for a new Dumfries and Galloway Royal Infirmary.
An NHS Dumfries and Galloway spokesman said: “The overall cost for the new hospital will be £533 million.
“This includes construction of the building and annual payments and maintenance over a 25 year period.”
He added: “The cost of construction of the building itself remains on budget at £212 million.”
Nationally, NHS boards face paying back £10 billion to firms for new hospitals that cost £2 billion to build under private finance deals.
And boards face repayments of £285 million in the existing calendar year alone.
The new DGRI at Garroch Loaning is being built through a non-profit distribution model with banks lending to a consortium of builders — with the Scottish Government paying 93 per cent of annual payback charges and NHS Dumfries and Galloway the rest.
But critical of the Scottish Government’s approach, head of policy at Unison Scotland Dave Watson said: “Whatever they’re paying, they’re going to be paying more to banks than if they borrowed it themselves.
“The simple fact is that the Scottish Government can borrow for virtually nothing at the moment.”
Mr Watson says through a private finance approach the Scottish Government keeps the borrowing off its balance sheets but ultimately ends up paying more taxpayer money.
In 2011, NHS Dumfries and Galloway chief executive Jeff Ace said the construction and maintenance for DGRI over 30 years would come to a unit cost of between £600 million and £700 million.
While noting costs may be less due to low interest rates, Dave Watson said: “My question would be what is it that’s not in the new hospital that was in the original planning when those numbers were put together.”

Share this story:
Shared 1 times.
Comments/editorial complaints