PPP scrapped for final NSW hospital

The fifth and last remaining hospital in New South Wales’ PPP bundle is to be publicly funded.

Shellharbour Hospital had been the only remaining project still earmarked as a PPP scheme, after the NSW government decided to use other funding routes for the four other schemes.

However, Parliamentary secretary for the Illawarra Gareth Ward has told local media that the government has now decided not to use a PPP model for Shellharbour either.

Ward had recently come out against the use of PPP for the hospital, arguing that the process was taking too long.

The NSW government announced a $1bn programme of five PPP hospitals in September last year, but a mixture of local opposition and investor uncertainty over the model – which wanted to pass more risk to the private sector – has resulted in all five eventually being replaced by more traditional funding routes.