Government submits £805m funding proposal for Jersey's new hospital

Redeveloping the existing site at Overdale was approved by the States Assembly in November 2020

Plans for Jersey's new hospital are set to cost nearly £805m if approved by politicians.

The Government of Jersey proposal to fund the Our Hospital Project will be put to the States Assembly in October.

The plans will see the construction of the new facility at the existing hospital site at Overdale, approved in November last year.

Designs and a planning application are expected in the autumn, with the hospital due to open by 2026.

If approved, £756m of the £804.5m funding proposal will be funded by borrowing - rather than from the government's capital reserves.

Minister for Treasury and Resources Susie Pinel argued the plans were an "affordable solution to borrow at historically low fixed interest rates" and would maintain Jersey's existing reserves.

She said: "This will enable the States to generate more income from our reserves than interest would be payable on debt, without seeking additional taxes from Islanders."

Senator Lyndon Farnham, who chairs the hospital projects oversight group, explained this would "provide the most cost-effective" funding model and "avoid further unnecessary costs".

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