• Aviva Investors commits £15.4m to NHS Tayside energy efficiency project, including a £7.7m indirect investment from the UK Green Investment Bank
• New energy centre to be constructed at Ninewells Hospital and Medical School
• Perth Royal Infirmary and Stracathro Hospital to benefit from energy-saving improvements
Aviva Investors, the global asset management business of Aviva plc (Aviva), is to provide funding for a programme of energy efficiency measures for NHS Tayside.
The £15.4m project will include the construction of an energy centre at Ninewells Hospital and Medical School in Dundee.
Aviva Investors has made the investment through its REaLM infrastructure funds on behalf of clients including the UK Green Investment Bank plc (GIB), which is indirectly investing £7.7m in the project.
The energy centre will provide 90% of the power and 100% of the heat for Ninewells, which also houses Tayside Children’s Hospital and Maggie’s Cancer Centre Dundee.
LED lighting and insulation will be installed at Perth Royal Infirmary and Stracathro Hospital near Brechin as part of the project.
The programme, which is due for completion in December 2016, is expected to cut energy costs at NHS Tayside by 10%.
NHS Tayside, one of the 14 regions of NHS Scotland, provides health services for a population of approximately 410,000 people in the local government areas of Dundee, Angus, and Perth & Kinross.
A 25-year performance contract has been signed with Vital Energi, which was procured under the Carbon Energy Fund (CEF) framework. Vital will be responsible for the design, construction, installation and on-going operation and maintenance of the technology for the duration of that agreement.
Scotland Office minister Andrew Dunlop said:
This is an extremely welcome announcement as it combines enlightened investment with energy efficiency and the best of Scottish innovation. This centre will make a real difference to the costs of providing energy to hospitals in Tayside and is another example of UK institutional investors supporting infrastructure projects which will be of benefit to the wider public.
Mark Anderson, Head of Property, NHS Tayside, said:
This project is designed to make our hospital sites more energy efficient and enhance the service and environment for the patients and staff of NHS Tayside. It fits clearly with our strategic theme of delivering high-quality care in the right place through safer, effective, resilient and sustainable services.
Lord Smith of Kelvin, Chair, UK Green Investment Bank, said :
This investment will make three NHS Tayside hospitals much more energy efficient, cutting costs and reducing greenhouse gas emissions. Of those hospitals, Ninewells is already internationally recognised for developing innovative technology in its operating theatres and we are encouraged that the health board is also taking a pioneering approach to the way it produces and consumes energy.
Ian Berry, Head of Infrastructure, Aviva Investors, said:
This project continues our long-term commitment to bring institutional investors to finance UK infrastructure projects. It is a fantastic development that will provide a range of benefits for the three hospitals. Aviva Investors’ proposition in infrastructure has been designed to respond to our clients’ need for outcome-oriented solutions, offering long-term, secure, inflation-linked income and attractive risk-adjusted returns.
Ashley Main, Project Development Director, Vital Energi, said:
This project is exceptionally exciting for us as it shows that financial savings and carbon reduction can be achieved by the public sector working in collaboration with the private sector on these innovative energy projects. The combination of energy generation and energy management initiatives have been proven to be an effective approach for health boards that are committed to lowering their carbon emissions.
About the project
Total GIB share of investment (via Aviva Investors REaLM Energy Centres Fund): £7.7m
Total capital mobilised: £15.4m
Co-investors: Aviva Investors REaLM Infrastructure Fund
Expected completion: December 2016
Notes to editors
About the UK Green Investment Bank
UK Green Investment Bank plc (GIB) was launched in November 2012. With £3.8 billion of funding from the UK Government, it is the first bank of its kind in the world. It is a “for profit” bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of Government.
GIB is wholly owned by HM Government. The Company is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. A wholly owned subsidiary UK Green Investment Bank Financial Services Limited, is authorised and regulated by the Financial Conduct Authority. www.greeninvestmentbank.com
About Aviva Investors
Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 15 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £246 billion as at 31 December 2014.
About Vital Energi Vital
Energi provides sustainable and renewable energy solutions in the public and private sectors and is responsible for many of the UK’s most prestigious energy projects. Vital Energi can deliver all aspects of a project from energy management and generation to metering and billing and long-term asset management.