A Carillion joint venture has reached financial close on a £300m Building Schools for the Future (BSF) project in Manchester. Carillion is one of the partners in the jv called the Local Education Partnership (LEP).The deal the jv has finally shaken hands on is the Tameside BSF project. Carillion’s partners in LEP are Tameside Metropolitan Borough Council and Building Schools for the Future Investments. The Carillion jv will deliver 12 secondary and special schools, at a capital cost of £173 million. There will also be two privately financed schools - Carillion will start building them in March 2009 and will then provide facilities management services over the following 25-year concession period. This element is worth a further £21m. All 12 schools will be completed by the end of 2012. The private finance element of the project is being funded by the usual combination of borrowing and equity. Barclays has signed up to provide £50m of debt finance. A further £4.2m of equity is being poured in – Carillion’s share is £3.4 million while the other two members will add £400,000 each. There is bonus in that the jv will also deliver further new schools for Tameside Metropolitan Borough Council in subsequent waves of the BSF programme. Estimates show this add-on element to have a capital value of £120m. Contract Journal Is the educational equivalent of PFI? Tameside Citizen
Wednesday, 18 February 2009
Carillion announces £300m BSF schools in Tameside
A Carillion joint venture has reached financial close on a £300m Building Schools for the Future (BSF) project in Manchester. Carillion is one of the partners in the jv called the Local Education Partnership (LEP).The deal the jv has finally shaken hands on is the Tameside BSF project. Carillion’s partners in LEP are Tameside Metropolitan Borough Council and Building Schools for the Future Investments. The Carillion jv will deliver 12 secondary and special schools, at a capital cost of £173 million. There will also be two privately financed schools - Carillion will start building them in March 2009 and will then provide facilities management services over the following 25-year concession period. This element is worth a further £21m. All 12 schools will be completed by the end of 2012. The private finance element of the project is being funded by the usual combination of borrowing and equity. Barclays has signed up to provide £50m of debt finance. A further £4.2m of equity is being poured in – Carillion’s share is £3.4 million while the other two members will add £400,000 each. There is bonus in that the jv will also deliver further new schools for Tameside Metropolitan Borough Council in subsequent waves of the BSF programme. Estimates show this add-on element to have a capital value of £120m. Contract Journal Is the educational equivalent of PFI? Tameside Citizen
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3 comments:
Yes this is a PFI scheme TC. More debt to be paid back in the future. These schools no doubt wont improve the standards of education nor will they be delivered on time and on budget.
Oh and it is Carillion too. Hmmmmm...
The National Audit office has announced that the BSF is £10Bn over budget and will be delivered late...wonder how Tameside is going on??
http://www.lgcplus.com/Business/2009/02/bsf_10bn_over_budget_and_late.html
Hear, hear Mellor Road Mincer. I know of a couple of BSF projects (granted by a different provider and not in Tameside)that were delivered late.
PFI/BSF and if you're following the goings on at Tameside General Hospital it's known as PPHJV there. Carillion hmmm indeed. PPHJV at TGH is known Consort Healthcare aka Balfour Beatty Capital.
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