A new team has been appointed to spearhead the $315 million upgrading of King Edward VII Memorial Hospital.

One of the biggest tasks for the Project Board, chaired by Herman Tucker, will be to recruit an international private firm to partner Bermuda Hospitals Board (BHB) for the scheme.

The private firm will pay around $260 million for the project, with the remaining $55 million footed by BHB.

Mr. Tucker yesterday pledged to keep the public fully informed of progress as work takes shape.

"Strong governance and transparent processes are essential to the success of building these much-needed new facilities at KEMH," Mr. Tucker, who is also chairman of BHB, said in a statement.

"All of us on the Project Board are committed to ensuring robust oversight in all project-related activities and making this an open process with regards to selection of advisers and our partner, ongoing costs and our general progress."

Other members on the board are Health Permanent Secretary Warren Jones, Assistant Financial Secretary Anthony Manders, Bermuda Hospitals Charitable Trust boss Wendy Augustus and BHB head David Hill.

The rebuilding work is the first phase of a wider 25-year plan to bring the ailing KEMH up to modern-day standards.

Mr. Tucker told a press conference yesterday that a public-private-partnership (PPP) model has now been approved, and advisers are being sourced to help make solid decisions over the way forward.

He said a newly designed patient room was unveiled yesterday and a second, with different features, would be ready very soon.

Patients and staff will help choose which of the two new patient rooms can become the standard for all renovations.

The new Oncology Centre, which is more spacious and accessible than the previous one, is nearing completion and will be open to patients in about a month.

"It will bring doctors, nurses and patients together in one location and provide space for visiting cancer specialists.

Mr. Tucker told the media: "As a board, our commitment is to improving our on-Island services and it is our vision to be the first choice in health and wellness.

"We recognise that our operations and standards of care need to match the planned quality of our acute care facilities — new buildings alone will not achieve the standards expected by the people of Bermuda."

Mr. Hill said: "Like any large infrastructure project, this one is complex. There are concepts that are new that must be communicated to stakeholders.

"From patients to environmental groups to health-related charities to volunteers, virtually everyone on the Island has a stake in the success of this project. In fact, it is hard to find anyone who is not affected by this undertaking.

"We have already been in contact with many groups and as we progress, we will ensure that information is given in a timely manner to all.

"In fact, we have already met with architects and engineers (yesterday) morning and (met) with the construction industry later (that) afternoon.

"All of us on the Bermuda Hospitals Board and Project Board are eager to move this project forward.

"It is needed, and now that we have approval, we are ready to start working toward the day that our first patients walk through the doors of our newly built and newly renovated facilities.

"Today, I am making a personal commitment to keep information flowing regarding the King Edward Redevelopment Project.

"I believe that this sets the tone for the type of project we are embarking on: open, transparent, professional and timely.

"As the KEMH Redevelopment Project progresses, you can expect regular updates from me."

What is a Public-private partnership?

Public private partnerships (PPP) are a method used throughout the world to revive public services.

One advantage of teaming up with a private company is that they can have better management skills and financial acumen than bureaucratic public bodies. However, in some countries, public sector unions have expressed scepticism over the extension of the private sector into areas which have been traditionally run publicly, like schools and hospitals.

The type of PPP for the King Edward VII Memorial Hospital project is called Design, Build, Finance and Maintain (DBFM). Bermuda Hospitals Board says this has a number of advantages including:

• many of the risks associated with the project are largely transferred to the private partner, including potential construction delays or cost-overruns;

• the new buildings are constructed to BHB's performance specifications which means it will meet Bermuda's long-term health care needs;

• BHB retains ownership of the facilities and maintains direct control over all operations that touch the patient, allowing BHB to improve patient care;

• payments are spread over many years, easing the financial burden of such a large project on the Island's population;

• the quality of the buildings are maintained by the PPP partner at a mutually agreed standard over a lengthy concessionary period, giving the partner a vested interest in building quality facilities.

Malcolm Butterfield, managing director of KPMG, which has been advising BHB, said: "One of the keys to a successful DBFM project is planning BHB's specific clinical and technical requirements prior to seeking a private partner.

"This is done by assembling a team of business, legal, clinical and technical advisers who work with BHB and the Project Board to determine the project requirements, set criteria and run a competitive procurement to identify the private partner that offers the best competitive proposal to design, build and raise financing for the new buildings and maintain the buildings over the concession period.

"This stage is critical as the criteria and selection process must be clear and transparent in order for us to have the buildings we need at the best value."