THE new Wharfedale Hospital in Otley will be the first hospital built by the Leeds Teaching Hospitals NHS Trust under the government's Private Finance Initiative (PFI).

The search for a PFI partner began in January this year with more than 30 organisations expressing an interest.

A shortlist of three was selected in June followed by a lengthy analysis of the bidders.

The final recommendation was endorsed by the trust board earlier this month.

The successful bidder was HBG Projects Ltd and United Medical Enterprises (UME).

Alex McKendrick, PFI projects director of HBG Projects Ltd, said he was pleased that the company and its partners in the consortium UME had been chosen to work with the trust.

"In all our PFI work, whether it be in education, law and order or healthcare sectors, we always aim to become an integrated part of the local community and we now look forward to taking our place within the community that will be served by the new Wharfedale Hospital."

Work on the new hospital is due to start in May next year and should open in 2004.

As owners of the building, HBG Projects will be responsible for its maintenance for 30 years - after which it reverts back to the NHS.

David Johnson, chief executive of the Leeds Teaching Hospitals NHS Trust, said it was their first PFI scheme.

He said: "This is a pioneering project for the trust as it is our first PFI scheme and we have taken great care in identifying the partner which is most able to meet our specifications."