Three groups are competing to build new facilities at the King Edward VII Memorial Hospital.

Originally five companies applied for the multi-million dollar job the number has since been whittled down to three.

The finalists are Balfour Beatty Capital Inc., Bermuda Healthcare Solutions and Paget Health Services.

The Bermuda Hospitals Board has asked the groups to submit proposals to design, build, finance and then maintain the new facilities that will be developed on the site.

According BHB chairman Herman Tucker, the members of each team shortlisted represent both Bermudian and international companies that have significant experience with projects of this nature.

"We are very pleased with the level of interest shown in the KEMH redevelopment project's public-private partnership and the high quality of all the teams who responded to the request for qualifications," he said. "The board is confident that the three shortlisted teams demonstrate the best combination of experience, financial capacity and technical capability to proceed to the request for proposal (RFP) phase of the selection process."

BHB deputy CEO and executive vice president Venetta Symonds added that they expect to issue RFPs to the shortlisted groups by the end of the year, with the preferred bidder chosen next summer.

Added BHB president and CEO David Hill: "The KEMH redevelopment project continues to be on schedule and on budget. The project team and BHB's advisers are working diligently with BHB's staff to finalise the clinical and technical requirements for the new facilities to ensure that they meet the needs of Bermuda."

The KEMH redevelopment project was announced by the Government in November 2008. Government approved development of new facilities through a "design, build, finance and maintain" delivery model a form of public-private partnership in January 2009. Construction is targeted to start in late 2010, with a completion goal of late 2013.

Expected to open in early 2014, the new facilities will provide Bermuda with patient-focused, high quality acute health care services.

During the same period, the existing KEMH building is also being revitalised to prolong its lifespan.