Health Minister Zane DeSilva congratulated the Bermuda Hospitals Board for last night signing a project agreement for the new hospital site.

The agreement with Paget Health Services (PHS), a consortium of experienced local and international firms, allows them to design, build, finance and maintain the new King Edward VII Memorial Hospital building.

The official groundbreaking will take place mid-January and it is expected to begin caring for patients in 2014.

The partnership between BHB and PHS includes a three-year construction phase and 30-year maintenance phase, explained BHB Chairman Herman Tucker.

The new building will include 90 single-occupancy en suite patient rooms, Bermuda's first dedicated day surgery unit and ambulatory care services like oncology, dialysis, asthma and diabetes management.

It will also include diagnostic imaging services and a new emergency room and utility plant.

BHB announced PHS as the preferred bidder nearly two months ago, but officially signed the Island's first public private partnership yesterday.

Mr DeSilva congratulated BHB for the move and said: “I look forward to seeing construction begin on one of the most important, and most needed, infrastructure projects in Bermuda.

“This new acute care building will give patients and staff the space they need. It will also ensure BHB can provide acute care services in line with Bermuda's long term needs at the required international standard of care.”

Meanwhile Mr Tucker said he was “pleased” about the partnership. “This new building is a clinical requirement in order to give the people of Bermuda the acute healthcare services we need going forward.

“PHS has provided an excellent design, construction, financing and maintenance solution that will give us the new space we specified,” he added.

Director of PHS, Robert Wotherspoon, was also delighted the building construction could now begin.

He said: “We look forward to the continuing success of our partnership, and to working together to deliver state of the art healthcare facilities for the people of Bermuda.”

Venetta Symonds, the executive lead on the development project, said it would provide more job opportunities for locals.

And Alan Burland, president of design and construction company BCM McAlpine called it a “very significant project for the company and for Bermuda in general”.

“It comes at a time when the construction industry is depressed and a project of this scale over a three year period will provide a major boost to both the industry and the local economy.”