Bank drops hospital project_2

29 Jan 09
The HSBC bank has withdrawn from financing a Private Finance Initiative hospital project at Enniskillen in Northern Ireland

30 January 2009

By Paul Gosling

The HSBC bank has withdrawn from financing a Private Finance Initiative hospital project at Enniskillen in Northern Ireland.

There are now anxieties about whether the £260m construction of the new acute hospital can go ahead.

The HSBC failed to respond to requests for information on why it had withdrawn. The co-financier of the hospital construction was to have been the Allied Irish Bank, which is in financial difficulty and is widely expected to be nationalised in the near future by the Irish government.

A spokesman for Allied Irish confirmed that it was a member of the PFI consortium for the Enniskillen hospital. 'We are certainly involved,' he said. 'But we would not comment on the financing.'

The Department of Health, Social Services and Public Safety in Northern Ireland downplayed the significance of the HSBC withdrawal. A spokeswoman said: 'It is everything as normal. I think it is just this bank has pulled out. I don't think it is a major issue for us.'

However, a promised statement from the department clarifying its position was not received, despite repeated requests.

PFjan2009

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