THE stalled redevelopment of Townlands Hospital in Henley could soon be resolved.
A meeting was held on Thursday last week between the Department of Health and insurance company Aviva, which is stalling on the release of a £7million loan towards the cost of a new “health campus”.
The company fears its investment could be devalued by the abolition of primary care trusts.
The move means that the loan, which would be repaid by developer Amber Solutions for Care with a 25-year lease of the buildings to the Oxfordshire trust, will not be guaranteed by the Treasury.
An Aviva spokeswoman said the company was “encouraged” by the talks.
She added: “The session went very well and resulted in a number of actions for both parties to review before meeting again shortly.
“The process will be an iterative one but both parties are committed to a speedy outcome that is satisfactory for everyone involved.”
Riana Relihan, project leader for the trust, says she hopes the contracts will be signed by the end of next month so that construction work can start.
The £8.7million redevelopment has now suffered six separate hold-ups, causing a delay of almost three years from the original 2011 completion date.