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Majadahonda hospital; Majadahonda hospital;

Majadahonda Hospital Madrid, Majadahonda

The hospital serves 520,000 people in the surrounding area.

Majadahonda is the first hospital in Spain to be developed using a Private Finance Initiative (PFI) model. Arup’s experience in engineering design in PFI hospitals - particularly in the UK - made the firm a natural choice to act as the funding body’s technical advisors for the project.

Majadahonda's new 172,000m² hospital will be equipped with 900 beds and a 75,000m² car park, enabling it to service the 520,000 people living in the town's surrounding area.

Mitigating Risk

The hospital is being funded by a PFI availability payment model. This method accounts for both the cost of the capital used to build the hospital (paying the interest on the money borrowed and returns to shareholders) and the lifecycle capital cost of the new facility (how much it will costs to construct and manage the hospital building during the lifetime of the contract).

Arup provided a technical inputs audit to ensure that the risks for investors are mitigated as much as possible. This included analysis of the construction aspects of the contracts and a Monte Carlo computer simulation of the penalties involved. Arup also studied the operation and maintenance costs initially planned by the consortium and recommended they increase these in order to achieve a better performance.

Arup’s work will help to ensure that Majadahonda Hospital can continue to provide adequate healthcare facilities and services for the next 30 years.

As the project progressed, Arup carred out analysis of Majahonda Hospital’s design, construction costs, planning, maintenance and life cycle costing, logistics, and sustainability and considered its operation and maintenance, including soft and hard facility management.

Before the financial close, Arup validated all the technical aspects of the project to ensure that the investors’ risk is mitigated. During the construction phase, the firm monitored risk, costs, timing and contracts for three years until the hospital reaches its operational stage. The firm also carried out a due diligence survey.