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Medi-Build is a Special Purpose Vehicle (SPV) assembled specifically for the delivery of the new
Bendigo Hospital, through a Public-Private Partnership (PPP) delivery method. The members that make
up the consortium have been handpicked based on their experience, capability, availability, and
suitability to collectively produce a world-class regional health service.
Upon selection to tender for, and subsequently deliver the New Bendigo Hospital, Medi-Build is excited
to offer Regional Victoria with a state of the art hospital that is Australia’s first patient centred health
service.
We trust that this expression of interest has met the requirements of that outlined in the EOI message /
brief.
Should you have any questions relating to this expression of interest, please do not hesitate to contact
the undersigned.
Regards,
Daniel J Collins
Daniel Collins
Director
Medi-Build Bendigo Pty Ltd
NEW BENDIGO HOSPITAL
EXPRESSION OF INTEREST
Medi-Build Consortium
Register Name ! ! ! Medi-Build Bendigo Pty Ltd
- Lend Lease Infrastructure Investments
Trading Name! ! ! Medi-Build - Macquarie Capital Group
Proposed Role and Function! Medi-Build will be the interface with the State
! ! ! ! and will deliver the construction and operational
! ! ! ! requirements, financing arrangements and
! ! ! ! taxation structure that will achieve the highest
! ! ! ! value-for-money solution to the State for the
! ! ! ! new Bendigo Hospital project.
Overview of Operations and" Lend Lease Infrastructure Investments Limited are the wholly owned infrastructure investment division of the Lend Lease Corporation. Lend
Structure " " " " Lease is one of the world’s leading fully integrated property solutions providers, with strong development, investment management, project and "
" " " " " construction management and asset and property management capabilities. Founded in Sydney in 1958 by Dutch immigrant and innovator Dick
" " " " " Dusseldorp, the group was born out of a vision to create a company that could successfully combine four disciplines; property, financing, " "
" " " " " development and investment. With over 5,000 competed projects across 30 countries, more than 10,000 employees and a strong network of "
" " " " " subcontractors and alliances, they have a proven track record of executing critical and complex projects for their partners. Lend Lease’s " "
" " " " " capabilities span the entire property value chain, from the origination of opportunities through to delivery of great outcomes. Lend Lease is listed "
" " " " " on both the Australian and New Zealand Stock Exchanges. They are also one of the world’s few investment-grade-rated community developers, "
" " " " " with a rating of BBB– from Standard & Poor’s and Baa3 from Moody’s.
" " " " " Lend Lease takes a long-term view operating with strong corporate governance, transparency and accountability. Sustainability has become an "
" " " " " integral part of their culture, as they believe every action adds up. Through design and investment in new technologies, they are committed to "
" " " " " delivering the next generation of sustainable property and infrastructure solutions. Lend Lease are committed to being Incident & Injury Free "
" " " " " wherever they have a presence. This philosophy reaches every part of our operations and extends to employees, partners, clients, suppliers and "
" " " " " subcontractors. #
! ! !
! ! ! ! ! ! !
Proposed Role and Function! As sponsor and equity provider to Medi-Build, Lend Lease Infrastructure Investments maintains a role in the bid leadership across areas of
! ! ! ! development and financing
Overview of Operations and" Macquarie Capital Group Limited forms part of the Macquarie Capital business which is wholly owned by Macquarie Group Limited, a leading
Structure " " " provider of full-service corporate advisory, financial markets and retail services in Australia. Macquarie Group Limited is one of Australia’s largest
" " " " companies, ranking in the top 15 by market capitalisation on the Australian Stock Exchange.
" " " " Macquarie Capital comprises the Macquarie Group’s Wholesale structuring, underwriting, corporate advisory, specialist funds (including
" " " " infrastructure and "real estate funds) and private equity capabilities in:
- Equity capital markets and equity and debt capital management and raising
- Specialised funds management including infrastructure, real estate and private equity funds
" " " " An active participant in the Australian PPP market, Macquarie Capital has recent involvement in large PPP infrastructure projects within
" " " " Australia, including the Victorian Desalination Plant (Vic) and Airport Link (Qld). Macquarie is currently has closed twelve health sector PPPs / PFI
" " " " including Royal Women’s Hospital (Vic) and Peterborough Hospital (UK)." "
Proposed Role and Function! As sponsor, financial advisor, debt and equity arranger for Medi-Build, Macquarie will be focused on delivering the most competitive financing
! ! ! ! and commercial package to the State, in addition to its role in the integrated bid leadership.
Overview of Operations and" Spotless works with over 40 hospitals and health organisations throughout Australia and New Zealand. They#deliver more than 30 specialised
Structure " " " managed services to the health sector including clinical, non-clinical, supply management and distribution services.# Recognised as one of the
" " " " largest healthcare support specialists, their systems not only meet but exceed the requirements of the Australian Council on Health Standards
" " " " Accreditation Guidelines.
! ! ! ! Customers can relieve critical and other care staff from non-patient tasks with a full transfer of risk. We offer a range of health support services !
! ! ! ! from food services and linen through to waste removal, asset and facilities management and security. Their integrated approach to service !
! ! ! ! delivery also ensures the highest levels of compliance with Australian and New Zealand Healthcare Standards.
" " " " Spotless’ integrated service program transforms service culture, focussing on client satisfaction and outcomes. Through integrating separate "
" " " " service departments into a single customer centered solution, they can deliver measurable improvements in value and high quality services.
! ! ! ! Customers enjoy the benefits of transparent contracts with high levels of accountability and guaranteed outcomes in terms of cost, service and !
! ! ! ! quality. This enables their customers more time to concentrate on achieving the best possible clinical care whilst we concentrate on reducing !
! ! ! ! operating costs and providing exceptional patient care support.
" " " " Spotless provide global benchmarking of services and standards, allowing best practices and principles to be applied. Our technical experts "
" " " " work in partnership with our customers to help identify cost synergies and efficiency opportunities. Other features include specialised software "
" " " " programs such as the Buckeye food management system – road tested quality assurance programs and proprietary systems and procedures, "
" " " " and key performance indicators built into the program to measure and quantify performance.
! ! ! !
Proposed Role and Function! Spotless will be the Hard and Soft Facilities Manager, responsible for the maintenance lifecycle and the soft services offering an
! ! ! ! integrated solution through a single point contact help desk.
Overview of Operations and" Baulderstone have been "Creating what matters" in Australian building and infrastructure for their clients and the community, for over 80 years.
Structure" " " Born of the union between two trusted names in Australian construction, MR Hornibrook, and AW Baulderstone, they have a rich heritage and
" " " " strong relationships. Today, Baulderstone are part of the Lend Lease Infrastructure Group and one of the largest Building and Engineering
" " " " companies in Australia, with over 1400 people across the country. They remain the tried and trusted name in Australian construction. Their
" " " " buildings include icons of local and worldwide significance including the UNESCO heritage-listed Sydney Opera House, Sydney's Anzac Bridge,
" " " " Brisbane's Story Bridge, Melbourne's Etihad Stadium and#Adelaide's Convention Centre. Baulderstone’s mission is always to provide
" " " " sustainable#solutions that deliver more innovation, more value, more talent, more leadership, more teamwork and more of what you expect and
" " " " deserve from your construction partner.
" " " " The company culture is built on the mindset that Baulderstone is more than a construction company - they are a service business. Simply "
" " " " stated, how Baulderstone interact and serve their clients is equally as important as the project they deliver. That’s why they have an internal "
" " " " culture that values teamwork, encourages leadership, and strives to deliver an overall experience superior to those offered by their competitors. "
" " " " It’s why Baulderstone’s clients come back to them year after year, and it’s why their project portfolio across Australia is second to none.
! ! ! !
Proposed Role and Function! Baulderstone will coordinate the D&C JV to create of a world class design, evaluate build ability and the cost of the construction, determine an
! ! ! ! innovative construction methodology, establish a timely construction programme and manage the delivery of the project.
Overview of Operations and! As one of the leading construction companies in Australia, Hansen Yuncken is at the forefront of change and innovation in the building industry.
Structure ! ! ! The company is known for its pioneering role in both the application of new technologies and the development of new construction techniques
! ! ! ! and project delivery methods. Founded in Melbourne in 1918 by Otto Yuncken and Lauritz Hansen, Hansen Yuncken has grown steadily in
! ! ! ! stature as a respected builder of major construction projects. They consistently seek to provide value and innovation across all aspects of a
! ! ! ! project. Hansen Yuncken offers a wide range of services in order that their clients will achieve the best outcomes for their project delivery and
! ! ! ! facility operation. "Building Value" is an intrinsic part of the culture at Hansen Yuncken.
! ! ! ! Hansen Yuncken's philosophy is one of fair dealing, high quality client service and building value. They are committed to developing and
! ! ! ! maintaining long-term relationships by focusing on achieving their client's project objectives. These relationships are the foundation of the
! ! ! ! company's longevity and success, earning Hansen Yuncken a proud reputation as a diligent, responsive and innovative contracting
! ! ! ! organisation.
! ! ! ! Hansen Yuncken has strong history and presence in central Victoria since they first opened an office in Shepperton in 1925. In that time they
! ! ! ! have gained unrivaled experience and relationships while producing extensive public and private projects in Victorian regional cities such as
! ! ! ! Bendigo, Shepparton, Ballarat, Albury/Wodonga, Beechworth and Echuca. They continue to maintain their strong presence and reputation in
! ! ! ! regional Victoria today through their established Albury/Wodonga branch office. Their local knowledge from local employees and subcontractors
! ! ! ! gives them an unmatched advantage for delivering outstanding outcomes for their clients in regional Victoria.
Proposed Role and Function! Hansen Yuncken is a member of the D&C JV with Baulderstone. As part of the integrated D&C JV, they will provide established local experience
! ! ! ! and knowledge to assist coordinate the creation of a world class design, evaluate build ability and the cost of the construction, determine an
! ! ! ! innovative construction methodology, establish a timely construction programme and manage the delivery of the project.
Overview of Operations and! Bates Smart is a highly regarded Architectural practice that has consistently demonstrated an ability to deliver integrated projects of large scale.
Structure ! ! ! Bates Smart provides architectural, interior design, urban design and strategic services from design feasibility to final documentation and
! ! ! ! contract administration services. Bates Smart have previously shown that they are capable across a range of sectors, including health care,
! ! ! ! tertiary, research, commercial, residential, hospitality, and community projects.
With over 150 years of experience, many of the firm’s earliest projects remain operational due to the deep understanding of durability, flexibility "
" " " " and sustainability. Bates Smart has an impressive portfolio at an Australian and International level, with notable projects in Victoria including the "
" " " " current Royal Childrens Hospital, the Alfred Centre Stages 1 and 2, and Federation Square.
Proposed Role and Function! Bates Smart / Silver Thomas Hanley (acting in an integrated Joint Venture) will act as Lead Design Consultant, providing Master Planning and
! ! ! ! world class Architectural Design Consultancy Services, including design and Health Planning.
Overview of Operations and! Silver Thomas Hanley approach Health Care projects with a strong design and operational knowledge, in order to provide unique and
Structure ! ! ! operationally sustainable solutions. The architecture and design employed by STH seeks to provide solutions that enhance the experience for all
! ! ! ! users of their facilities.
Silver Thomas Hanley also boasts an impressive portfolio of large health care projects. Notable Victorian examples include Casey Hospital, "
" " " " Orange Hospital, Ballarat Hospital, Mercy Hospital for Women, and the Royal Children’s Hospital. Silver Thomas Hanley is one of the few "
" " " " specialist Health Architecture firms that operate within Australia.
Proposed Role and Function! Bates Smart / Silver Thomas Hanley (acting in an integrated Joint Venture) will act as Lead Design Consultant, providing Master Planning and
! ! ! ! world class Architectural Design Consultancy Services, including design and Health Planning.
CONSORTIUM DETAILS PAGE 8
DELIVERY OF PROJECT VISION, OBJECTIVES
AND UNDERSTANDING OF KEY ISSUES
UNDERSTANDING AND PROPOSED APPROACH
OUR UNDERSTANDING OF THE PROJECT VISION AND OUR APPROACH TO DELIVERING THE PROJECT VISION
OBJECTIVES AND OBJECTIVES
Medi-Build understands the importance of regional hospitals and the key role they Fundamental to delivering these objectives for the Bendigo Community is the key
play for the thousands of Victorians within these communities. The key objective for strategy of selecting ‘the right team’, bringing together world leading resources in
Medi-Build and the New Bendigo Hospital is to save lives and improve the health of finance, design, delivery and operations for the New Bendigo Hospital.
Victorian’s within the communities of Central Victoria. The aim for patients in the
region to be able to receive world class treatment without the need of travel to Medi-Build has carefully considered the selected proven organisations to achieve an
medical facilities in metropolitan areas is a key understanding of Medi-Build. It is also integrated team of world leading Australian companies. The consortium members are
important that the facility is able to educate and train the next generation of world all leaders in the world in their individual fields and have the experience and capability
class medical practitioners in the community, therefore the importance of education in health and social infrastructure when viewed collectively that is without comparison.
and research facilities in the New Bendigo Hospital. Medi-Build has the unique ability Medi-Build is able to present a complete and innovative solution for the New Bendigo
to deliver these objectives to Central Victoria while also delivering outstanding value Hospital that guarantees the delivery of outstanding design, quality and value for
for money to the Victorian State Government. money.
Medi-Build further enhanced their ability to delivery second to none innovation and
quality for the New Bendigo Hospital by embarking on a global study tour of the
Our Understanding newest and most advanced hospitals in the world. From the tour we were able to
discover
- Better treatment and outcomes for patients in Central Victoria
- Current trends in healthcare design to improve outcomes of patients
- The improved ability for collaboration between the Bendigo Hospital and
researchers, specialists and educators in Metropolitan Victoria - Design solutions for research and education within hospitals
- A world class facility in Bendigo that attracts medical practitioners from around the - New and emerging technologies
world
- IT health advances
- Outstanding value for money for Bendigo Health and the Victorian Department of
Health - Improvements for operational outcomes
A Community Environment
One of the clear messages gained from our recent international study tour, is the need
Medi-Build believes that the overall health precinct design should contribute to the
for the creation of an environment that is non-institutional, calming and personal,
local community and greater Bendigo. We want to provide a hospital to Bendigo that
particularly in potentially high stress zones. The layout of the hospital can have an
the whole region of Central Victoria can be proud off. This will be achieved by ! !
impact on these issues as significantly as the visual effects. The aim to provide easy
outstanding architectural design in the internal, external and overall master plan that
drop off and collection of patients, separation of back of house functions from front of
will be recognised through out Australia. Medi-Build will engage the Bendigo Art Soci-
house function and the use of communal and private spaces will enhance the patient
ety and the Bendigo Art Gallery to provide artistic consultation to bring a welcoming,
journey by creating a more comfortable environment for their patients and their family.
personal environment to the patient journey within the Bendigo Hospital through the
The Medi-Build design team will achieve these environmental outcomes by applying integration of urban artwork. Community involvement and considerations will be an
the design principles outlined below integral aspect when considering the planning and design of the hospital.
- Enable art, music, colour and texture to be an integral part of the design
- Lifecycle of the system elements When designing to ‘future-proof’ the facility, Medi-Build will consider the following
objectives
- Energy and water consumption
- Greenhouse gas emission - Generally, design structural and services elements in a way that they can be
- Loss of business continuity costs upgraded with minimal disruption to patients and staff
Medi-Builds vision of the new Bendigo hospital is that it will achieve a Green Building
Council of Australia (GBCA) rating of 5 stars, under the Healthcare Version 1 rating
tool.
External views will also play a major role, in providing the patient/s with a space that
makes them feel as though they are not locked within a hospital.
Medi-Build has a long history in providing facilities management to large scale projects The hospital design will include two (2 no.) loading bays on either side of the dividing
of this nature, Spotless will form an integrated services provider, having a single desk / road, to ensure that food and linen is always deliverable, and receivable.
point of call for the following services
- Off site laundry Cleaning
- Off site kitchen Medi-Build will provide all hospital cleaning services to the appropriate hygiene stan-
- Cleaning dards, as we have delivered in health care facilities previously. We will also provide
- Security cleaning of retail premises and food and beverage establishments (within the
development).
Off Site Laundry & Kitchen
An offsite laundry and kitchen will be utilised in the delivery of the new Bendigo Hospi- Security
tal. Located within only a 9 minute drive of the hospital (via two alternative routes), in Medi-Build will provide security services through means of technological devices, and
the suburb of Eaglehawk, the facilities will be staffed by employees who have been manned security that monitors the New Bendigo Hospital.
sourced by Medi-Build in the City of Bendigo, and surrounding regions.
The kitchen facilities will be operational 24/7, and provide all of the staff and patient
meals to the hospital. Given the short travel time and available technology by way of
refrigerated/heated transport vehicles, etc. this method of food preparation and !
delivery can be achieved with great success, as it has been at various other Victorian
Hospitals.
The offsite laundry will operate in much the same manner, with Medi-Build providing a
service to make sterilised sheets and linen available to the hospital on demand. Linen
changes will occur on a frequent basis, as is the standard in hospitals throughout
Australia and the world.
Medi-Build has a preliminary agreement, and is in discussions (exclusively) with Jimmy Medi-Build will adopt the Victorian whole of Health information and communication
Possum to provide all non-medical furniture items to the new Bendigo Hospital. technology strategy; HealthSMART, in the development of the new Bendigo Hospital.
HealthSMART is a seven-year $360 million strategy to modernise and replace ICT
Jimmy Possum is a leading Australian furniture designer and manufacturer from "" systems throughout the Victorian Public Healthcare Sector. The ICT improvements
Bendigo. They are already a major employer in the Bendigo region and this opportu- provide healthcare agencies with the tools required to meet the growing healthcare
nity will allow them to further extend their Bendigo employment force, whilst also pro- demands expected in the future
viding the new Hospital facility with ‘a personal / community touch of Bendigo’.
In abiding by the Governments strategy to deliver ICT improvements and provide the
Jimmy Possum is not only renowned for leading furniture designs and quality prod- opportunity for advancing technology in the health sector, Medi-Build will work to pro-
ucts, but also sustainable design and manufacture methods; through the use of recy- vide effective ICT systems in the following areas;
cled timbers, etc. - Clinical Systems
- Patient and Client Management Systems
The furniture that Jimmy Possum will provide to the new Bendigo Hospital is purely - Resource Management Systems
non-medical, and would likely encompass mainly sofas, chairs, tables, etc. in admini- - Picture Archiving Communication Systems
stration areas, foyers, corridors, and the like. - 24/7 Help desk
- Disaster Recovery Capabilities
Medi-Build has had extensive experience undertaking construction works in existing To limit the impact of greenhouse gases emitted for the construction of the new hos-
hospitals and has developed unrivaled procedures to allow minimal disruption to the pital as well as the embodied energy needed, Medi-Build will use Hanson ‘Green”
existing facility. We will limit noise, vibration and disruption by undertaking processes concrete for the structure of the building. This concrete requires a significantly smaller
such as amount or carbon to be used in the manufacturing process than traditional concrete
while still having the same characteristics of traditional concrete. Hanson have a
- Bored piles instead of driven piles quarry and batching plant on the southern side of Bendigo where all ‘Green” concrete
will be produced. This will limit the amount of transport required and improve the local
- Electric cranes instead of diesel
economy and employment in Bendigo.
- Programme loud works around critical hospital procedures
Medi-Build’s construction consortium members are accredited with ISO 1400:2004
- Ensure continues access for ambulances and emergency vehicles
“Environmental Management Systems” and will ensure a minimal effect on the local
- Ensure no dust leave the construction areas environment during the construction of the New Bendigo Hospital.
We are committed to working with stakeholders and will aim to limit the impact on the
local community during the construction process by ensuring
The construction of the New Bendigo Hospital has the ability to have an enormous!
financial benefit for the local community. Medi-Build will employ local subcontractor,
employees and suppliers to ensure the regional economy received the maximin bene-
fits from this project.
The Medi-Build SPV is the single point of accountability with the state and the Ben- - A world class hospital that will cater for the patients journey from the min-
digo Hospital’s Stakeholders, which ensures that clarity and ease of communication
ute they walk in the door to when they depart through a qualified Facilities
between all parties involved. The consortium is joined by the following agreements
Manager
- Project agreement
- Site occupancy agreement
The consortium structure of Medi-Build is represented in a diagram on the following
- Construction contract
page. This diagram indicates the structure and relationships between each consor-
- Building Direct agreement tium member to give the best possible value for money to the Victorian Department of
- Consultancy agreement Health.
- Finance Direct Agreement
- Service Provider Agreement
Medi-Build have strategically allocated the relevant roles within the consortium to help
deliver the best possible outcome using our experience as a backbone. Experience is
what will separate us from others as it demonstrates our credibility within the health
system field of projects.
This Consortium structure displays the direct agreements that consist between the
parties within the structure. These agreements will help navigate the most desirable
form of communications to help finish the project as timely as possible and will display
the risks that are involved undertaking those roles.
MEDI-BUILD
SHARE HOLDERS
AGREEMENT
SPONSOR
- MACQUAIRE CAPITAL SERVICE
- LEND LEASE INFRASTRUCTURE PROVIDER
INVESTMENTS AGREEMENT
CONSTRUCTION
CONTRACT
D & C : JV
- BAULDERSTONE F/M SPOTLESS
- HANSEN YUNCKEN
CONSULTANCY AGREEMENT
DESIGN TEAM : JV
- BATES SMART
- SILVER THOMAS HANLEY
FINANCE + SECURITY
DOCUMENTS INCLUDING
FINANCIER DIRECT AGREEMENT
+ STATE DEED CHANGE
FINANCIERS
- BENDIGO BANK
- ANZ CONTRACTUAL STRUCTURE PAGE 3
- NAB
- AUSTRALIAN SUPER
PROJECT RISK
Medi-Build have been involved in the delivery of many billions of dollars of both ! Gov- Medi-Build Consortium supports the Victorian Department of Health’s risk allocation
ernment and other privately funded projects and are extremely experienced in the risk guidelines as set out in the Expression of Interest. Medi-Builds Design, Construct and
associated with the New Bendigo Hospital. FM Teams are experienced in the delivery of PPP’s both in Victoria and Australia, and
have deep understanding of market "practice and financiers requirements.
Our experience and capability will allow us to
- Recognise, evaluate and allocate risk via back-to-back contractual structure The State can be assured that each entity accepting a certain project risks possesses
- Document risk allocation a balance sheet that is capable of sustaining the risks offered to it. Through Medi-
- Develop effective risk and mitigation strategies Build, the Victorian State Government can be certain that they have assigned each
- Accept and manage risk risk to the entity most able to handle that individual risk.
Medi-Build’s experienced in the delivery of PPP projects will complement the Victorian Stakeholders Risks
Department of Health’s requirements in respect to allocation of risk. Each consortium Medi-build will engage with the local stakeholders within Bendigo to seek a more
member is experienced and capable in handling the risks allocated with them for the community-based approach toward both the design and delivery of the hospital. We
successful completion of the New Bendigo Hospital project. aim to achieve a project design that incorporates the best interests of the people
around and within the area. Parties that we will interact with will include:
- Local councils, City of Greater Bendigo
Stage Process
- Employees of the existing hospitals
Identification Medi-Build shall workshop key issues internally, which shall
ensure that each possible risk scenario is identified. Medi- - Local businesses
Build shall rely on its previous experiences of relevant other
PPP projects. - Local residents
Allocation Allocate the identified risk to the team member best able to
control it and that also have the financial capacity to absorb
real risk.
Management and Moni- The best able member will apply an organisational structure
toring to ensure the effective review, monitoring and reporting of
the project through the term. Through such pro-active lead-
ership and communication, potential issues will possibly be
avoided before they may become a problem.
General Issues
Medi-Build will obtain and maintain appropriate insurance cover for a building. The State may specify the
Insurance
minimum insurance types and amounts *
Taxation Medi-Build will take all taxation risks with respect to its participation in the project *
Change in Law The State will bear both the time and cost risks associated with a change in law that is specific to the Project
*
Force Majeure Medi-Builds performance obligations will be suspended for the duration of a Force Majeure Event
*
Site
Site Conditions Medi-Build will accept overall responsibility for Site conditions
*
Cultural Heritage The State will assume responsibility for native title and provide relief in relation to discovery of artefacts
*
Planning and other approvals
Medi-Build is responsible for the construction and commissioning of the Bendigo Hospital within the required
Construction and Commissioning time period to deliver the output specifications. Delay in completion will result in a reduced payment period and
*
potentially payment of liquidated damages.
No relief will be given to Medi-Build for delays that are an occurrence of which are within Medi-Build’s control.
Relief for Construction delays
Delays caused by the actions of the State, will result in relief being provided to Medi-Build * *
Payments will be made upon the delivery of the required services. Sub-standard performance will result in re-
Payment
duced payments *
Performance monitoring and review Medi-Build will be required to monitor its performance against the specifications and KPIs
*
Medi-Build must ensure that the Bendigo Hospital remains and all times fit for the intended purpose from the
Fit for the intended purpose
commissioning of the project to the expiry of the term *
FINANCE
FINANCIAL CAPABILITY
Medi-Build are able to deliver funding certainty to the State for the New Bendigo Hos- Medi-Build’s strong financial capability ensures that we are second to none in PPP
pital project through the following attributes financing. The key characteristics of our consortium for the New Bendigo Hospital are
! Experience and commitment of respondent members to enable accep- ! Structure of D&C joint venture provides joint and several parent company
tance of key risks and provision of security packages on market competi- guarantees
tive terms ! Provision of FM security packaging and parent guarantees
! Strong structuring and arranging capabilities combined with a strong bank ! Recognition of expectations of financiers in terms of provision of security in
group to provide funding certainty and an innovative capital markets team accordance with current market practice in large Australian PPPs
in the likely event that the bond markets are once again in the Australian ! Cornerstone equity commitment from related parties to the D&C joint ven-
PPP environment ture members to demonstrate the commitment of both Macquarie Capital
! Robust, committed equity strategy to ensure that all equity is available at and Lend Lease Infrastructure Investments
financial close from sponsors with PPP financing experience - Cornerstone equity investment with 100% of the equity required from both
! Competitive and collaborative approach to work closely with both the pro- the sponsors
viders of capital and the State to optimise the financing solution for the - Underwritten by Macquarie Capital and Lend Lease Infrastructure Invest-
project. ments
The five above banks and Australian Super have committed to Medi-Build and form
the core group to finance the project. KPMG have been employed exclusively by
Medi-Build to engage as its financial advisor, providing in-depth experience in com-
petitively financing PPPs.
FINANCE PAGE 2
CONSORTIUM SPONSORS
Medi-Build consist of quality partners who posses strong capabilities and corporate Lend Lease Infrastructure Investments
strength to successfully deliver the funding strategy and requirements for this PPP. Lend Lease have the capabilities, experience and innovations to meet the challenge
Both Macquarie and Lend Lease will be able to deliver unparalleled funding certainty to sponsor the New Bendigo Hospital with the Medi-Build consortium. They have a
and value for money to the State. strong presence on PPP projects in Australia, principally in the health sector and have
a strong track record in partnering with governments to successfully deliver such pro-
Macquarie Capital and Lend Lease Infrastructure Investments relevant PPP funding jects. Lend Lease have strong credentials as a sponsor and with their vast range of
experience is demonstrated by their involvement and investment in these recent pro- experience they are able to bring all the elements together to delivery enduring public
jects: assets and partnerships.
Macquarie Lend Lease
Awards
Victorian Desalination Plant Royal Children’s Hospital Melbourne
! MFSS Investment Stewardship Award for Funds Management - 2009
Eastlink (Victoria) Toolern development (Victoria)
The Royal Women’s Hospital Melbourne South Australian New Schools KPMG
The Medi-Build consortium has brought on KPMG as their financial advisers as they
Macquarie Capital are one of Australia’s, and the world’s leading advisers on private and public transac-
Macquarie Capital are global specialists in financing of PPP infrastructure projects and tions. KPMG have a large amount of knowledge and experience in PPPs, and with
have been at the forefront of this sector for over the last decade. They form part of the this they are able to advise Medi-Build on conceptualising, structuring, negotiating
Medi-Build consortium as major project sponsors as their team bring together a and executing PPPs. Having KPMG engaged as our financial advisor to this project
wealth of experience and specialist industry knowledge. also give us further advantage as they have a range of skilled and experienced pro-
fessional that can give in-depth advice on infrastructure and major projects as well as
Awards in the healthcare sector.
! Project finance deal of the year - 2010
! Asia-Pacific and Global PPP Deal of the Year by PFI and Infrastructure Jour- Awards
nal respectively ! 2011 World's Best Outsourcing Advisors - in recognition of our depth of
! In 2009, Macquarie was also ranked No.1 globally for total value of PFI/PPP experience, global reach and holistic approach.
transactions and No.1 for the total value of Australian project finance trans- ! 2010 World's Best Outsourcing Advisors - in recognition of our depth of
actions (Dealogic). experience, global reach and holistic approach.
! Top two overall in Consultancy Rankings 2009 by OpRisk & Compliance - in
recognition of our experience in risk management.
! Number One Real Estate Tax Advisory Firm, 2008 - in recognition of our
depth of local knowledge combined with our cross-border
FINANCE PAGE 3
FINANCING STRUCTURE
Medi-Build is currently gauging the market to develop a competitive financing struc- Debt funding approach and progress
ture for the new Bendigo Hospital project. Below outlines the current view in regards Medi-Build will utilise the resources and experience of the sponsors to deliver the
to the finance structure of the project. Medi-Build has the intention to use a combina- most effective funding structure for the project. Medi-Build has a well thought out
tion of these six components during the entire life of the project; however the final strategy to deliver value for money outcomes for the state. The funding approach
structure has yet to be decided and will be further developed during the bid phase in requires three key features; reputable partners with a high quality institutions; An In-
conjunction with KPMG. teractive approach to maintain a competitive collaborative process between financiers
and finally a robust structure in terms of structure, gearing and securities, Medi-Build
Form of capital Term and tenor Comments must make sure it is sustainable for the whole life project. In developing the debt
structure, Medi-Build will consider the available market and the optimal level of gear-
Credit foncier debt Whole of life credit foncier from Some banks have indicated
construction completion that whole of life debt might ing for the project.
be available but as a small
portion of the overall debt size
Strategy and approach with debt providers
Bullet debt 5-7 year interest only and repayable The most efficient debt – the
as a bullet state can back-end its pay- Medi-Build’s approach to obtaining commitments from debt providers is based on
ments as it does not need to forming a strong financiers group. Medi-Build believes that a group comprising the
include principal payment, four major domestic banks in ANZ, Commonwealth bank, NAB and Westpac along
however, involves the highest
refinance risk. with Bendigo bank and Australian Super will be required to achieve certainty a com-
Interest only/ 10-12 year tranche that remains Less efficient than interest- petitive funding package. Medi Build will also form a core bank group comprising of
amortiser debt interest-only during construction only but likely to be priced at least two of the major banks with experience and expertise in project financing.
and potentially operations, before more effectively
Medi-Build will work closely and in a cooperative manner with the core bank group to
amortising to balloon
Bonds 25-30 year nominal or indexed Whole of life tenor which ele- develop the financing solution and drive the wider financiers group.
annuity bonds ments refinancing risk. How-
ever, may be comparatively
more expensive than bank
debt
Equity Redeemable preference shares and The level of gearing is ex-
ordinary equity with a coupon that pected for similar projects is in
may be deferred the same range of 85-90%
significant quantum expected
from offshore investors.??
Liquidity facility A standby cash advance facility To support operating expendi-
ture and capital expenditure
overruns.
FINANCE PAGE 4
VALUE FOR MONEY FINANCING
The funding solution will be driven by core bank group, leading the rest of the group The key principles of the strategy are as follows
towards the most competitive package.
! Certainty of financing
KPMG have a great relationship with the financiers in the group as well as Macquarie ‣ Medi-Build will provide certainty of funding to the State for the pro-
and Lend Lease Infrastructure Investments already have a close relationship with all of ject.
the banks in the group as well Medi-Build will be able to draw on these relationships ‣ The approach taken of only having the two project sponsors con-
to drive the financing solutions and resolve any issues that may arise. This is a key tribute to the entire equity funding gives the state certainty that the
differentiating factor in recognising the strength of Medi-Builds financing capability. necessary equity finance will be available for the project
! Alignment of interests
Medi-Build’s ability to obtain the most competitive funding is further strengthened by ‣ Medi-Build members and key contractors are committed to holding
its integrated whole of life solution. This whole of life approach is supported by a cornerstone equity stake in the project
Baulderstone and Spotless our D&C and FM provider during design, construct and ! Flexibility
operational phase. ‣ Medi-Build will be flexible in structuring it’s funding solution and
consider all forms of financing to develop a fully committed debt
Competitive Equity Funding and equity package for the project
Based on what the new Victorian Coalition Government has pledged to the project ! Team
from the 2011-2012 state budget there is an indicative project size of A$630m. Medi- ‣ Medi-Build’s members are experienced with proven capability in
Build has the expectation that both project sponsors will provide a required total eq- delivering large scale complex PPP projects
uity of 20% of the above indicated project cost, which equates to $126m. ! Simplicity
To achieve value-for-money and financial certainty for the State, Medi-Build has put in ‣ Medi-Build is committed to developing a structure that us trans-
place key objectives and principles for the equity funding strategy of the project. parent and sustainable for the whole life of the project, and
The key objectives of the equity strategy are to ‣ In the environment, the State will seek a simple, straight forward
and efficient financing structure
! Create a trusting relationship for the whole term of the project with the Medi-
Build Sponsors who are contributing all of the equity, and Equity Investor Indicative Equity Contribution
! Secure flexible equity capital competitively that is truly reflective of the project
Macquarie Capital 50%
risks in order to deliver value for money outcomes for the state.
Lend Lease Infrastructure 50%
Investments
Total Sponsors 100%
FINANCE PAGE 5
EXPERIENCE AND CAPABILITY
FINANCE
Medi-Build’s capability to raise funding for PPP projects of similar size and complexity Medi-Build’s financial adviser KPMG has a dedicated debt advisory team with exten-
is demonstrated below where their wealth of past experience in funding transactions sive experience in funding Public Private Partnership transactions, which assisted to
in the infrastructure sector and their ability to be able to raise debt and equity financ- deliver projects such as;
ing for a large number of quality projects displays their experience and judgment to ! Moscow-Saint-Petersburg PPP Toll Road (684 kms)
help deliver a successful financing package. ! Pulkovo airport
! Moscow waste disposal plant
Below are past successful PPP projects which show Medi-Builds proven capability to ! Construction of educational centres in Russian regions
deliver committed financing solutions despite the challenges in the current financial
markets. KPMG is a known industry leader and has advised on over 1,700 PPP transactions
with a value of over $285 billion. The combined extensive knowledge and experience
Transaction Date Cost of Medi-build sponsors in arranging debt is demonstrated below
(Aus $m)
Royal Women’s Hospital (Victoria) – Macquarie May 2007 307
Transaction Debt Raised (Aus $m)
New Royal Children’s Hospital (Victoria) – Lend Lease November 2007 946
Victorian Desalination Plant 4,100
Education Works New Schools (South Australia) – July 2009 323
Eastlink (Victoria) 2,370
Lend Lease
North Staffordshire Hospital (United Kingdom) - June 2007 833 The Royal Women’s Hospital (Victoria) 290
Macquarie
New Royal Children’s Hospital (Victoria) 600
Victorian Desalination Plant (Australia) - Macquarie September 2009 5,720
Toolern development in Victoria 1,200
Toolern development in Victoria – Lend Lease May 2010 1,200
South Australian New Schools 250
Medi-Build has selected and structured and team to ensure this is achieved. The Medi-Build Design Team is a collaborative and unified group comprising local,
national and international expertise and experience in Research, Health and PPP pro-
Our Design Team comprises multi-disciplinary architects and research and health care jects. Working on previous projects and during the EOI process the Medi-Build design
specialist. Medi-Build’s design team consists of two experts in their fields; Bates team has a made a cohesive connection with one another that has established work-
Smart and Silver Thomas Hanley. ing relationships within the consortium. Through existing relationships with key stake-
holders and Bendigo project partners we believe the design team will be able to de-
Silver Thomas Hanley has over 30 years’ experience in delivering innovative health liver a world class project. Our combined national and international expertise and ex-
care solutions which represents an exceptional value for money for their clients. perience has provided us with the knowledge required to provide a future ready and
Health being their primary business they have successfully delivered several health-
value for money project
care facilities overseas and nationally, which recognises the level of experience they
have in all facets of the health care industry. Silver Thomas Hanley is locally based in
Melbourne and has over 80 personnel in Melbourne and Sydney. Amongst the pro-
jects delivered abroad and nationally they have provided first class facilities in a range
of health areas including; cancer care, tertiary and research, women’s and children’s
health, mental health, aged care and health PPPs for local and overseas govern-
ments.
Bates Smart being a multi-disciplinary architect has great experience in Health and
research projects. Established in 1853 Bates Smart is Australia’s oldest architectural
firm, this being said they will provide a great amount of knowledge and experience to
the team. They have recently been involved in Australia’s most significant Health Care
and Urban Renewal developments including the Royal Children’s Hospital and the
Alfred Centre Stages 1&2.
Royal Children’s Hospital Parkville, Melbourne Project of acclaimed architectural and urban design quality as demonstrated through
The Royal Children’s Hospital is the largest hospital redevelopment undertaken by the peer recognition. Silver Thomas Hanely and Bates Smart both have received national
State Government of Victoria. In a goal to achieving a world class health facility this and internal recognition through architectural and urban design quality and have re-
project is similar in size and complexity of the Bendigo project. The RCH is providing ceived the following awards:
many innovative health care concepts to enable it to be future ready and create value
for money for the state. Various design concepts are in place to create a family cen- SILVER THOMAS HANELY
tred design, an environmentally sustainable design and a design that will enable a - RGH – Aged Acute Mental Health Unit
welcoming and nurturing environment. The $1 billion project will provide patient rooms - RAIA SA Chapter Awards, The colorbond Award for Steel Architecture
(85% being of single occupancy) that are designed to respond to the emotional needs Award 2007
of children and enhance patient experience and recovery rates. - Lyell McEwin Hospital Redevelopment Stage A
As required with the Bendigo Hospital project, the RCH is involving multiple key - RAIA SA Chapter Awards, New Buildings Award 2006
stakeholders and community engagement to deliver one of Australia’s most recog- - RAIA SA Chapter Awards, Sustainable Architecture - Commendation 2006
nised health care facilities. The RCH is also trying to achieve a 5 star green star with - RAIA SA Chapter Awards, Collaborative Design – Commendation 2006
the use of environmentally sustainable design principles enhancing a design to heal
and nurture which will also be required of the Bendigo project. BATES SMART
- Victoria Barracks
The Abbotsford regional Hospital and Cancer Centre, Canada - RAIA National Awards, BHP Colorbond Steel Award 2003
The Abbotsford regional Hospital and Cancer Centre, a PPP project in Canada was - RAIA NSW Chapetr Awards, ESD/Energy Efficiency Award 2003
the first in the region. The completion of the project achieved value for money which - RAIA NSW Chapter Awards, Commercial Buildings Architecture Award 2003
was able to deliver 300 hospital beds which would service for over 150,000 people in - RAIA NSW Chapter Awards, BHP Colorbond Award 2003
the direct region. The $355 million facility was built on time, on budget and within - The Architecture Show Magazine and The Francis Greenway society, Green
scope. The building is approximately 60,000sqm and provides specialised health Buildings Awards, Bronze Medal 2002
services including, general acute care, maternity, NICU, cardiac care, palliative care, - Federation Square
emergency, ambulatory care and a cancer treatment centre. Silver Thomas Hanley in - Property Council of Australia Award: Overall Winner 2005
association with Musson Cattell Mackey Partnerships where able to deliver the full - Urban Land Institute Award for Excellence: Asia Pacific 2003
design of this project. The PPP received various awards and a Gold LEED certification - RAIA National Awards, Walter Burley Griffin Award for Urban Design 2003
(equivalent to Australia Green Star). This project is similar in size and followed the - Architecture + Cityscape Awards, Dubai, Winner, Urban Design Category
same procurement process as the Bendigo Hospital and includes high levels of tech- 2003
nical integration and ESD integration which will be required for the Bendigo project. - RAIA Victorian Chapter Awards: Victorian Architecture Medal, The Mel-
bourne Prize, Urban Design Award And Institutional – New Architecture
Award 2003
Royal Children’s Hospital Parkville, Melbourne - Royal Children’s Hospital Parkville, Melbourne
The RCH includes ESD features such as tri-generation, active chilled beams, solar - NSW Police Headquarters Parramatta, Sydney
panels, biomass boiler, rainwater collection, black water treatment plant, low loc ma-
- Casey Hospital, Berwick, Victoria!
terial selection, façade design and orientation and 500 bike parks, The project is tar-
- Orange Hospital, New South Wales
geting a 5 Star Green Star rating.
- International PPP projects:
Alfred Centre Stages 1&2 Prahran, Melbourne - Abbotsford Regional Hospital and Cancer Centre, Abbotsford, Canada,
The Alfred Centre Stages includes leading ESD initiatives such as double glazing, low - Niagara Health, Ontario, Canada
e glass, passive solar design, window louvers, water conservation, low voc material
selection, heat exchange from central plant, economy cycles and variable speeds and
integrated building management systems.
Hansen Yuncken have been committed to producing quality and complex projects
since the beginning including creations such as the $157 million Lyell McEwin Hospital
Redevelopment Stage A & B, Prince of Wales Hospital refurbishment ($18 million),
The Grange Aged Care Facility ($10.5 million), Bendigo Police Station ($16 million) and
the $194 million Orange Hospital being delivered as a Public Private Partnership initia-
tive of the NSW Government.
Orange Hospital was an NSW Government initiative developed as a social infrastruc- The construction of a new 24 hour police station in Bendigo was completed by Han-
ture Public Private Partnership completed in mid-2010. This PPP involved Hansen sen Yuncken in late 2007. This modern police facility covers an area of over 5,000m2
Yuncken in the design, construction, finance and maintenance of the new hospital and hosts 170 staff from varying police operational units. Constructed on Bendigo’s
and related infrastructure within the existing Bloomfield Health Campus in regional main thoroughfare it delivers an accessible and user friendly facility for not only local
NSW. residents but the increasing number of visitors travelling to the area an annually.
Similar to the Bendigo Hospital, this consisted of a new multi-level Hospital with both Similar to the Bendigo Hospital Project, this facility was constructed in the very heart
integrated Cancer Care facilities and a new Mental Health services. The construction of Bendigo to provide essential services to the public residing in regional Victoria. Site
of the new core hospital building consisted of 200 general beds, four (4) operating access issues were overcome through Hansen Yuncken’s management techniques
that have seen them continue to construct major regional projects right across Austra-
theatres, sixty (60) specialist treatment areas, multiple radiotherapy bunkers and ac-
companying community health areas. The construction was of significant size of lia.
32,000m2, refurbishment of two (2) existing heritage buildings and a new helicopter
The completion of a challenging design and construction complex in Bendigo will
pad with comparable issues surrounding the new Bendigo Hospital facility.
strengthen Hansen Yuncken’s capability in partnering with Baulderstone to produce
the Bendigo Hospital PPP.
As a PPP and delivering similar health facility requirements, this is a relevant example
of Hansen Yuncken’s experience in constructing significant projects to regional areas
of Australia.
Large projects and experience that Spotless have experience include; - outsourcing non-core services - so that you can focus on what you do best
- Special Event Hospitality Services - implementing systems and processes that enable risk minimisation and
management
- Housing New South Wales (the largest residential maintenance contract in
Rohan Chandler
Mark McSweeney
Jordan Kiely
Kostandinos Stamatopoulos
Trent Moernhout
Anthony Badagoff
Zdravko Knezic
BIBLIOGRAPHY
! Advanced Construction Management Lectures & Workshops (Semester One, 2011). Delivered
by Guillermo Aranda-Mena (and the various guest presenters)
! ANZ. 2011. Home page and financial advice / corporate information links.
http://www.anz.com.au (accessed May, 2011)
! National Australia Bank (NAB). 2011. Home page and financial advice / corporate information.
http://www.nab.com.au (accessed May, 2011)
! IBM. 2011
! http;//www.ibm.com.au (accessed May, 2011)