Work will finally resume on completion of the new Royal Liverpool Hospital.
Building of the city’s new flagship hospital halted at the beginning of this year following the collapse of construction giant Carillion.
It later emerged that the defunct contractors had also installed unsafe cladding on the building which was in direct breach of fire safety regulations.
The £335 million project has since been taken under Government ownership and construction is set to restart in the next month with new contractor Laing O’Rourke.
Aidan Kehoe, chief executive of the Royal Liverpool and Broadgreen University Hospitals NHS Trust, said: “We are delighted to announce that we, The Hospital Company, lenders and the Government have all signed up to this agreement, that means construction can restart soon and that the new Royal will now be publicly funded.
“The agreement provides significant savings to the public sector and represents good value for money for the taxpayer.
“All parties have worked extremely hard to resolve the issues caused by the collapse of Carillion.”