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Development of new national maternity hospital hit by row between Ministers

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The long-planned development of a new national maternity hospital in south Dublin has hit a fresh hurdle as a row has broken out between senior Ministers over the authorisation process for the project.

The Irish Times understands that Minister for Public Expenditure Michael McGrath has rejected proposals sent to him by Minister for Health Stephen Donnelly in a letter in mid-April.

Mr Donnelly is understood to have effectively sought an exemption for the development of the hospital from official rules governing spending on large State capital projects. He is believed to have sought the exemption in an attempt to speed up the project and to allow it to go to tender.

The relocation of the existing National Maternity Hospital from its current premises at Holles Street in the city centre has been debated for years, and the current plan for the project was first announced in 2013 by the then minister for health James Reilly.

However, the plan to relocate the maternity hospital to the campus of St Vincent’s University Hospital in south Dublin has been beset by delays for several years amid rows over its governance and ownership.

It is understood that Mr McGrath, in a strongly-worded letter of reply to Mr Donnelly, maintained it was absolutely essential that the spending rules were adhered to, including the provision of business cases.

The spending rules were introduced after the controversy surrounding the massive overrun on the cost of the new national children’s hospital, which is being built on the St James’s Hospital campus in Dublin 8,

A spokesman for Mr Donnelly said on Friday night that there would be no delay to the project.

The HSE is understood to be finalising a full business case for the development which includes new estimates for construction and operational costs. When this process and the accompanying legal framework agreement regarding issues such as governance structures are completed, they are expected to be submitted to the Department of Health and subsequently to the Cabinet.

If agreed then at that point authorisation would be provided for the project to go to tender. The project would have to return to Cabinet again on conclusion of the tender process before the green light could be provided.

The final bill for the project is expected to be significantly higher than the €350 million estimate drawn up a number of years ago, with construction expected to take about 2½ years.

Key priority

In a joint statement on Friday night the Department of Public Expenditure and the Department of Health said: “The development of a new national maternity hospital is a key priority as set out in the programme for government.

“Both Ministers and their officials will be working closely alongside the HSE to progress this critical piece of much-needed national healthcare infrastructure in a manner consistent with public spending rules.”

In a letter to The Irish Times, published on Saturday,the existing master and a number of former masters and senior figures at the National Maternity Hospital in Holles Street said it could not continue to provide and deliver all of the services required for women and infant health in its current location.

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Hotel Indigo debuts in Austria

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Hotel Indigo opened its first hotel in Austria, Hotel Indigo Vienna – Naschmarkt. Located a short walk from the city’s historic center, the hotel offers 158 guest rooms, a rooftop garden resembling an urban jungle, a restaurant, and a lobby bar.

 

Taking inspiration from a famed local architect, Otto Wagner, a key member of the Secessionist movement, guests will find touches of gold used throughout the fixtures in the bathrooms as well as intricate patterns, made famous by Otto, woven into the carpet design in the hallway, and the tiles behind reception. Otto’s love for gold, Art Nouveau design, and ornate patterns can also be seen at famous local buildings such as the Majolikahaus, a short walk from the hotel. From ground level, the building looks innocuous, but as guests look skywards, they will see the top floors are decorated with exquisitely sumptuous floral motifs in brightly colored porcelain and gold leaf, a hallmark of the new style.

 

Stefanie Augustin, General Manager, Hotel Indigo Vienna – Naschmarkt, commented: “We are pleased to open our doors and accept our first guests into the first Hotel Indigo in Austria. We sit in the heart of the surrounding neighbourhood and strive to make all the locals proud, by helping to bring a bit of that external story in so guests can truly experience what Vienna has to offer.”

 

 

 

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Tolent secures Newcastle resi project (GB)

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Tolent will put up 135 ‘ultra-modern’ system-build homes, with designs selected from an architectural competition. Sunderland’s new Vaux neighborhood, being built on the site of an old brewery, will eventually have 1,000 homes, according to the plans, as part of a drive to double the number of people living in the city centre. The homes will stand alongside The Beam and City Hall – the latest development to rise from the ground at Riverside Sunderland. Construction work on the scheme is expected to start within weeks, forming the first of the new distinct neighbourhoods that will create city centre housing for up to 2,500 residents.

 

The properties are based on the winning designs in the Homes of 2030 competition, which was launched in March 2020, and managed by the Royal Institute of British Architects, to encourage the design of environmentally-friendly homes that support people in leading independent, fulfilling lives as society ages.? Construction work on the development is due to start this summer and the first tranche of homes should be completed by the end of 2023.

 

Sunderland City Council leader Graeme Miller said: “We’re absolutely thrilled to have taken this final step to get work started on our flagship residential scheme at Riverside Sunderland. The housing developments on Riverside Sunderland will be world-class, and Tolent is an ideal partner to deliver them, based locally and capable of building these aspirational homes.”

 

Tolent chief executive Paul Webster said: “Vaux neighbourhood is an amazing project that showcases the strides being taken in Sunderland to modernise the city centre. The world-class houses being built will provide a community fit for the future and an archetype for sustainable housing. As a truly local business, we are proud to be involved in the project and to showcase our ability to meet and exceed the capabilities of national contractors on a local level. The project will complement a number of local landmarks that we have constructed including The Beam, Beacon of Light and Echo Building. We have been working closely with the entire team since being appointed preferred bidder back in September and we can’t wait to get started.”

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BlackRock acquires Dagenham urban logistics development (GB)

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A joint venture (JV) between Chancerygatea fund managed by Credit Suisse Asset Management, and Hines has forward sold a 172,000ft² urban logistics development in Dagenham to a fund managed by BlackRock for an undisclosed sum. Dagenham Council has approved plans to speculatively build 15 Grade A urban logistics and industrial units at the development which is called Zephyr Park. The units range from 5,490ft² to 34,670ft² and are available leasehold and freehold. Construction is due to commence in August this year. The six-acre site was previously owned by wholesale electrical distributor Rexel UKSituated on Rainham Road between the A12 and A13, Zephyr Park is located less than half a mile from Hackman Capital Partners and Dagenham Council’s proposed €348.5m (£300m) film and TV studios.

 

Chancerygate managing director, Richard Bains, said: “Zephyr Park will be an outstanding urban logistics development which will generate continued investment and job creation for Dagenham. Forward selling Zephyr Park to BlackRock shows the strength in urban logistics as an asset class. It is also a testament to the high specification, a sustainable product we build as it attracts businesses to locate to our developments ensuring they are best placed to continue to grow. We look forward to working with Hines and BlackRock to deliver Zephyr Park and expect to achieve practical completion in summer 2023.”

 

Greg Cooper, Hines managing director, industrial and logistics, added: “We are pleased to have executed this opportunity to recycle this asset, with the value generated illustrating the unabating demand for high-quality logistics developments. It is an asset class which remains a key focus for Hines in the UK, and we are continuing to explore opportunities to grow our portfolio of both big box and urban facilities.”

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