Construction giant Carillion has won a £390 million contract after being named preferred bidder for a hospital development in Canada.

Wolverhampton-based Carillion (CLLN) has been selected by Infrastructure Ontario and Halton Healthcare Services as the preferred bidder to finance, design, build and maintain the new replacement Oakville Hospital.

Carillion expects to invest some £28 million of equity in the project and will also be a member of the joint venture that will carry out the construction work and provide facilities management and maintenance over 30 years – the total value of which is expected to add up to £390 million for Carillion.

Construction will begin immediately and be completed in 2015.

Carillion chief executive John McDonough said: “We are delighted to have been selected as the preferred bidder for this important new hospital, which further reinforces our position as a leader in delivering public private partnership projects in Canada, particularly in the health sector.

“We look forward to working with Infrastructure Ontario and Halton Healthcare Services to achieve financial close and then to deliver this new state of the art hospital, for which we will also provide facilities management and maintenance services.”