Jersey’s New Hospital Contractor Faced £136 Million Losses
Jersey’s government has selected Bouygues UK as the preferred contractor for its new acute hospital at Overdale, despite the company reporting significant financial losses. The construction giant, a subsidiary of French firm Bouygues Construction, has incurred a total of £136 million in losses since 2022. This revelation has raised questions about the contractor’s financial stability for such a major infrastructure project.
Key Takeaways
- Bouygues UK, chosen for Jersey’s new hospital, recorded £136 million in losses between 2022 and the present.
- The company’s parent firm has injected £129 million into Bouygues UK over the same period.
- Jersey’s Health Minister, Deputy Tom Binet, has expressed confidence in Bouygues UK’s ability to deliver the project.
- A backup contractor has been identified as a contingency measure.
Financial Performance of Bouygues UK
Bouygues UK’s financial accounts, publicly available since September, show a consistent pattern of losses. The company reported losses before taxation of approximately £40 million in 2022, followed by around £60 million in 2023, and a further £30 million last year. This marks the third consecutive year of significant financial deficits for the firm.
Government’s Response and Confidence
Despite these financial figures, Jersey’s Health Minister, Deputy Tom Binet, has defended the selection of Bouygues UK. He stated that the New Healthcare Facilities Programme team conducted thorough due diligence and considers Bouygues UK to be a “stable company.” Deputy Binet highlighted that the parent company, Bouygues Construction, has provided substantial financial support, injecting approximately £129 million into Bouygues UK over the last three years. He also mentioned that the parent company will offer a guarantee for the project.
Project Timeline and Contingency Plans
Bouygues UK is set to enter into a professional services agreement with the Jersey government. The company will collaborate with the New Healthcare Facilities Programme team to refine proposals, confirm supply chain and pricing, and prepare for the main construction works, which are anticipated to begin in early 2026. The government aims to finalise the contract before the end of the current parliamentary term. To ensure resilience and commerciality, an unnamed backup tenderer has also been confirmed, should final contract terms not be agreed upon with Bouygues UK.
