Joint Ventures: the future for capital investment for health or The Only Way is West Sussex?
Joint Ventures are contracting vehicles enabling public sector decision makers such as health stewards to partner with the private sector and leverage capital and resources for typically large projects.
JVs have been around for some time but with the growing capital investment agenda backed by the need to fill the infrastructure gap, Joint Ventures appear an innovative way for the public sector to secure high level of capital leverage, risk sharing as to garner global project management expertise from private partners.
As such, the UK regularly launches holistic urban development programmes where health facilities are enshrined in larger community service design:
West Sussex County Council in the UK has launched a tender notice seeking to procure a strategic property development partner (JV Partnership). the development partner will carry out the demolition, preparation, design, build, finance, including (but not limited to) housing, retail, new residential units, commercial units, public government buildings and spaces including hospitals, police and ambulance facilities, education and leisure facilities (PPP bulletin).
At a time where circa 80% of PHC facilities across the UK are not fit for purpose from a building/architectural perspective, could this be a solution? Is this part of the long-promised Local Asset Backed Vehicle (LABV) agenda whereby public sector brings the land and its value is matched in capital by private investor to offer rejuvenation of housing and social services?