A £3.7m public appeal has been launched to build the first phase of a children's hospital for Wales on a site at University Hospital of Wales in Cardiff.David Durham, chair of Cardiff and Vale trust, which is providing £1.3m, plus the site and infrastructure for the revenue-neutral scheme, said: 'As a trust we could not raise all the capital money to build it.' But Conservative health spokesman David Melding said: 'We would have funded the hospital from capital funds.' The first phase will provide a building with two 25-bed wards and a third-floor shell, to be converted to theatres at a later stage. Mr Durham said that private finance initiative funding was 'not completely ruled out' for the 'last £10m' to equip the third floor.