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Grant Thornton UK expands international public sector experience with advisory role in key Quebec health project

Leading business and public sector adviser Grant Thornton International continues to expand its project finance consultancy with the firm's appointment as financial adviser to one of Canada's most important public health initiatives in decades.

The 'CHUM' hospital campus in downtown Montreal and a new research centre, known as CR-CHUM, have a combined capital value of £535 million, and make up one of the two 'mega-hospitals' to be built as Public Private Partnerships (PPPs) within the province.

The appointment was secured through partnership between Grant Thornton UK LLP and Quebec's Grant Thornton member firm, Raymond Chabot Grant Thornton, who offered an in-depth understanding of the Quebec healthcare system, a long-standing relationship with CHUM management and links with Provincial Government.

The experience acquired by Grant Thornton UK's project finance specialists when previously advising on major hospitals and research centres in both the UK and more recently Russia, was a key driver in winning the contract, in which a multidisciplinary team of accountants, economists, investment bankers, healthcare consultants and real estate experts will develop contracts and secure funding.

The CHUM project will include ambulatory and emergency care units, a teaching hospital and a technical centre, while CR-CHUM will offer the very latest in medical research facilities. Both projects are expected to make a major contribution to the ongoing regeneration of downtown Montreal.

Peter Cutler, Government and Infrastructure Advisory Partner at Grant Thornton UK, said the CHUM PPP was the largest healthcare advisory project taken on by the firm to date, and was set to become a best practice model for future developments around the world.

"We have now worked on PPP/PFI health initiatives in several countries, but this is set to be the most challenging, and rewarding, yet due to the scale and complexity of the work, and it should set a strong precedent for future public/private ventures in the sector."

Adding to the project's status, Britain's junior Health Minister Lord Darzi recommended replicating the type of facilities provided by the CHUM and CR-CHUM developments in the UK in last year's Healthcare for London report. Dubbed Academic Health Science Centres in the UK, these type of facilities were held up by Lord Darzi as model for future health developments that combine care and research.

Cutler said the project was being seen as a benchmark in Canada, and it was likely a successful outcome would encourage a much greater take up of the PPP mode, fast tracking large public infrastructure developments.

Financial close is expected in Spring 2009, with construction work to begin soon after.