Leighton Holdings Ltd (ASX: LEI) says its consortium has been selected as preferred proponent for New Royal Adelaide Hospital PPP project .

The South Australian Government has today announced the selection of the SA Health Partnership - a consortium comprising Leighton Contractors, Hansen Yuncken, Macquarie Capital Group and Spotless - as preferred proponent to deliver the Royal Adelaide Hospital (NRAH), the company said in a statement on monday.

The new state-of-the-art hospital will be delivered as a Public Private Partnership (PPP) under the State Government's Partnerships SA model.

The SA Health Partnership consortium will undertake the financing, design, construction and operation of the non-clinical services of the hospital for approximately 35 years, while SA Health will continue to operate the hospital and provide all core clinical services, staffing, teaching and research.

Leighton Contractors will undertake the design and construction of the new hospital in joint venture with Hansen Yuncken. It will also act as consortium sponsor and equity investor in the project.

"The New Royal Adelaide Hospital will be the largest and most technologically advanced hospital ever built in Australia, and one that will be recognised as a benchmark internationally," Craig Laslett, Managing Director of Leighton Contractors said.

Bevan Brunckhorst, Consortium Project Director and spokesperson for the consortium, said the NRAH project will be delivered with patients at front of mind.

"The new state of the art hospital will provide South Australians with the nation's most advanced health care in Australia," he said