Last checked at 17 Aug 2015 07:00
17 August 2015
Carillion achieves financial close on the Midlands Priority School Building Programme private finance batch - £187m of construction and support services revenue plus an equity investment of £5.5m
A Carillion Joint Venture, PSBP Midlands Limited, has achieved financial close on the Midlands Priority School Building Programme, a 25-year private finance concession contract (a Public Private Partnership) using the UK Government's PF2 model.
The Midlands Priority School Building Programme will improve education facilities and outcomes for the students and staff in the eight schools listed below by replacing existing substandard buildings. The new schools will be constructed over a two-year period to the highest standards of sustainability and provide excellent facilities to support teaching and learning in addition to providing excellent new facilities for the local community.
Carillion expects to invest some £5.5 million of equity in the project and Carillion will also build the schools at a capital cost of £138 million. Hard facilities management and life-cycle maintenance services will also be delivered by Carillion and these services are expected to generate approximately £49 million of revenue over the life of the concession contract.
As the leading provider of apprenticeships and training in its sector, Carillion will use this project as a further opportunity to provide training and apprenticeship opportunities as well maximising the use of local suppliers.
Commenting, Carillion Chief Executive, Richard Howson, said: "We are delighted to have achieved financial close on this important schools programme. Carillion is a market leader in the education sector, having delivered some 150 schools over recent years, many of which were Public Private Partnership projects. This latest project has been an excellent example of collaboration between the public and private sectors and we look forward to working with the Education Funding Agency to deliver state of the art facilities to support its objectives for creating outstanding learning environments for students".
Schools in the Midlands Priority Programme
Alfreton Grange Arts College, Derbyshire
ARK Kings Academy, Birmingham
Greenwood Academy, Birmingham
Plantsbrook School, Birmingham
President Kennedy School, Coventry
The Phoenix Collegiate, Sandwell
The Queen Elizabeth Academy, Warwickshire
Top Valley Academy, Nottingham
Notes to Editors
Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. The Group had annual revenue in 2014 of some £4.1 billion, employs around 42,000 people and operates across the UK, in the Middle East and Canada.
The Group has four business segments:
Support services - this includes facilities management, facilities services, energy services, utility services, road maintenance, rail services and consultancy businesses in the UK, Canada and the Middle East.
Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings and infrastructure, mainly in the Defence, Health, Education, Transport and Secure accommodation sectors.
Middle East construction services - this includes building and civil engineering activities in the Middle East.
Construction services (excluding the Middle East) - this includes building, civil engineering and developments activities in the UK and construction activities in Canada.
This and other Carillion news releases can be found at www.carillionplc.com
For more information
John Denning, Director Group Corporate Affairs, Carillion plc +44 (0) 1902 906333
Finsbury
James Murgatroyd or Gordon Simpson +44 (0) 207 2513801