A Carillion-led Local Education Partnership (LEP) has been appointed as the preferred bidder for the £370 million Wolverhampton Building Schools for the Future (BSF) programme, part of the UK Government’s £65 billion BSF programme.
This latest success means that Carillion has now secured, or been appointed as the preferred bidder for, BSF contracts worth around £1.7 billion, further consolidating its position as a leading supplier to the BSF programme.
The Wolverhampton LEP, comprising Wolverhampton City Council, Building Schools for the Future Investments LLP (BSFI) and Carillion, will deliver 26 schools in four phases over the next four years.
The first phase of four schools comprises two secondary schools and two Special Educational Needs (SEN) schools with a combined capital cost of approximately £72 million.
Two schools in the first phase will be privately financed by a combination of borrowing and equity. The LEP shareholders will contribute approximately £6.4 million of equity, of which Carillion will provide some £5.1 million. Carillion will also provide facilities management services for the two privately financed schools and these services are expected to generate approximately £24 million of revenue for Carillion over the 25-year concession contract period.
The subsequent phases of the Wolverhampton BSF programme will deliver the remaining schools at an estimated capital cost of £300 million, some of which will also be privately financed and in which Carillion expects to make further equity investments.
Commenting, Carillion chief executive, John McDonough, said: “This latest success further consolidates Carillion’s position as one of the UK’s leading suppliers to the Building Schools for the Future programme and brings the total value of the BSF projects that Carillion has secured or for which we are the preferred bidder to some £1.7 billion.
“The major investment being made in Wolverhampton will provide the City with 26 outstanding new schools. We look forward to working with Wolverhampton City Council and its head teachers and their staff to provide the facilities they need to deliver a first class learning experience for students.”
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Source: Carillion Website - 29/01/10 |
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