A MAJOR refurbishment and new apartments on the former Severalls Hospital site in Colchester, costing £500,000, forms the basis of a health Trust's first annual plan.

The North Essex Partnership NHS Foundation Trust launched the plan as an NHS Foundation Trust outlining its business objectives for the coming year and through to 2011.

The scheme includes the refurbishment and opening of a new unit, called Rivendell, formerly used as accommodation for nursing staff at the former Severalls Hospital, in Boxted Road.

This work has already been completed, but the scheme also includes the creation of self-contained apartments for long-term rehabilitation in Colchester, which are being carried out in the form of refurbishments to Severalls House next to where Rivendell is now.

The spokeswoman confirmed the scheme overall was costing £500,000.

The plans revealed will also see a new older adult unit for providing inpatient, day and community services for the mid-Essex area covering Chelmsford, Maldon and Braintree, costing £13 million to build and set to be ready by winter 2009.

The Trust, the main provider of mental health services in north Essex, has also pledged the development of community services Trust- wide, so people receive appropriate support at home as an alternative to hospital admission and to improving services for people with both mental health and substance misuse problems.

Chief executive Dr Richard Coleman, at an event to launch the plan, said: "One of the key benefits of being an NHS Foundation Trust is being able to reinvest financial surpluses back into local mental health services.

"Excellent financial management means we are able to implement a substantial investment programme in our services and buildings this year.

"Last year, we achieved a surplus of £3.9 million, supporting an overall capital investment programme this year of £9.4 million."

The Trust's planned total income in 2008/09 is £971/2 million.