Skanska consortium reaches financial close eight months after it was originally expected to do so in August last year.

Skanska has finally reached financial close on the UK's biggest PFI hospital scheme - the 拢1.2bn Barts and The London.

The Swedish contractor, in consortium with Innisfree and Equion (part of John Laing), reached financial close eight months after it was originally expected to do so in August last year.

The redevelopment of St Bart's in the City of London and The Royal London Hospital in Whitechapel will be Skanska's largest ever construction project. The architect on the scheme is HOK.

St Bart's will be transformed into a cancer and cardiac centre, while the Royal London will be the largest new hospital in the UK.

The combined facilities will provide 1248 beds.

The consortium will be responsible for the financing, design, construction and operation of the project for the duration of the 42-year contract.

Preliminary work has started on site and the first phase - the cancer centre at Barts - is scheduled for completion in 2010. Construction of the whole project is expected to finish in 2016.

The hospitals will remain in operation through the construction phases.