NHS Grampian health board has approved an “initial agreement” – the first phase of business planning – to progress £120 million plans for the Baird Family Hospital and The ANCHOR Centre. The Baird Hospital will provide maternity, gynaecology and breast screening services while The ANCHOR Centre will provide outpatient and day-patient treatment for patients with cancer and blood disorders. They would be located to the west of the Royal Aberdeen Children’s Hospital on the site currently occupied by the Foresterhill Health Centre and the Breast Screening Centre.

The project will be taken forward using the “non-profit distributing” model or “NPD” model and will be delivered by a ‘Project Company’ who will be responsible for providing all aspects of design, construction, ongoing facilities management (hard maintenance services and lifecycle replacement of components) and finance throughout the course of the project term other than a small number of exceptions termed authority maintenance obligations (principally responsibility for making good/replacing wall, floor and ceiling finishes).

The Initial Agreement is the first phase in the business planning process for the project and describes the strategic context within which the proposed investment will take place. Following approval of the Initial Agreement the two subsequent phases of the business planning process will involve the development and approval of Outline and Full Business Cases.

Construction is due to begin in January 2018 with The ANCHOR Centre completed in December 2019 and the Baird Family Hospital due to open in December 2020.

The board also approved an initial agreement for a new multi-storey car park at Aberdeen Royal Infirmary, funded with a £10m donation by the Wood Family Foundation.

A decked car park – like that at Aberdeen International Airport – is the preferred option and would be cheaper and quicker to deliver than a “traditional concrete construction”. The car park would cost an estimated £300,000 to run each year, including rates.

The board meeting report said: “The identified locations for The Baird Family Hospital and The ANCHOR Centre will have a direct impact on traffic flows, parking and safe pedestrian access.

“This is almost certain to see a significant shift in activity towards the west of the campus.”

Appropriate procurement routes will be assessed in more detail and will include HubCo, Frameworks Scotland 2, NPD and Traditional Procurement.

NHS Grampian also considered a business case for an £18m energy fund. The initiative is anticipated to deliver a reduction in overall carbon emissions of circa 16 per cent and an annual cost saving of £0.586m which will be shared 87 per cent or £0.510m to NHS Grampian and 13 per cent or £0.076m to Aberdeen University.