Carillion closes on Building Schools for the Future (BSF) programme

Source: Construction Digital

Date :04/01/2008 11:03:19

Carillion and its partners, The Local Education Partnership, have achieved financial close on the £175 million South Tyneside and Gateshead Building Schools for the Future programme.

The LEP will deliver 14 secondary schools in the current wave of the BSF programme, with a total area of approximately 100,000 square metres. This wave of the programme will also include the provision of healthcare facilities.

As well as investing some £2 million of equity in the project, Carillion will carry out the construction work in three phases over four years, starting in January 2008 with all schools open to pupils by January 2012.

Carillion will also provide facilities management services for the new schools over the life of the 25-year concession contract, to the value of approximately £16 million. This involves the delivery of FM services including mechanical, electrical and building fabric maintenance, caretaking, security, cleaning and grounds maintenance services and full life cycle responsibility.

Authorisation

The LEP will also provide further new schools for South Tyneside and Gateshead in subsequent waves of the BSF programme and may deliver other community regeneration projects, subject to these receiving the necessary approvals.

Commenting, Carillion chief executive, John McDonough, said: “We are delighted to have achieved financial close on our first project under the BSF programme, which we expect to be a strong growth area for the Group.

“We have built an excellent partnership with South Tyneside and Gateshead Councils that has resulted in financial close being achieved in just 12 weeks. We look forward to developing this successful partnership to deliver the ‘Education Vision’ for both Councils with state-of-the-art community focused schools.

“The contract also includes the delivery of a £5 million primary care centre co-located with a new council community centre and library and demonstrates the flexibility of this procurement route for providing a wide range of community improvement initiatives.”

January 4, 2008