Re Contract

RNS Number : 6283Y

Balfour Beatty PLC

09 July 2008

 



9 July 2008

BALFOUR BEATTY REACHES FINANCIAL CLOSE ON £75 MILLION 

PHASE 1 OF ISLINGTON SCHOOLS FOR THE FUTURE PPP CONTRACT

Balfour Beatty, the international engineering, construction, services and investment group, announces today that financial close has been achieved on Phase 1 of the £150 million Islington Schools for the future PPP programme.

The contract will be executed by Transform Schools, Balfour Beatty's specialist education concession company. Construction will be carried out by Balfour Beatty Construction and Balfour Kilpatrick and long-term facilities management services will be provided by Haden Building Management, also part of the Balfour Beatty Group. IT will be provided by RM Education.

Commenting on financial close today, Balfour Beatty Chief Executive Ian Tyler said:

'We are delighted to have reached financial close on our second Building Schools for the Future concession, and our first using the Local Education Partnership model. We look forward to a long-term partnership with the London Borough of Islington and to bringing the expertise gained in six other schools PPP schemes to helping Islington achieve its vision of offering every child in the borough a positive and attractive learning experience'.

Ursula Woolley, Islington Council's Executive Member for Children and Young People said: 

'Reaching the stage of financial close in Islington's Building Schools for the Future programme is an important marker for Islington Council and Transform Schools. Building work is getting into full swing now and I'm looking forward to seeing the improvements at each school take place. The end results will be fantastic for Islington's children, teachers, parents and local communities too as state-of-the-art education facilities are put in place.' 

Under the contract Transform Schools has incorporated, in joint venture with Islington and BSFi, a Local Education Partnership to be known as Transform Islington.

In Phase 1, Transform Islington will project manage and deliver new and refurbished accommodation to two schools together with facilities management and ICT managed services. In addition, through its subsidiary Transform Islington (Phase 1), a further new PFI school will be delivered.

Over the next five years Transform Islington will project manage, design and deliver a further two phases comprising five schools and two Pupil Referral Units representing a further £80m of investment in Islington's schools.

This is Transform Schools first Building Schools for the Future (BSF) project comprising the LEP delivery model and will involve a Balfour Beatty equity investment of £3 million.

-ENDS-

Enquiries to:    

Tim Sharp

Tel: [phone]

www.balfourbeatty.com

Notes to Editors:

1. Transform Schools has the PPP schools concessions for Stoke, Bassetlaw, Birmingham, Knowsley, North Lanarkshire and Rotherham involving building 75 new schools and learning centres and upgrading and maintaining over 100 others. Balfour Beatty has committed a total of £50 million of equity investment in this market.
2. Balfour Beatty companies are construction partners in a number of other PPP schools schemes including East Lothian, Calderdale and is one of the two framework contactors providing construction services to the £160 million BSF scheme for the Manchester City Council.
3. BSF is the largest single schools capital investment programme for over 50 years.  The Government plans to spend some £45 billion over a fourteen year period on the programme.  BSF will provide world-class teaching and learning environments for all pupils, teachers and communities in England.
4. Balfour Beatty is a world-class engineering, construction, services and investment business, well-positioned in infrastructure markets which offer significant long-term growth. We work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise. Our skills are applied in appropriate combinations to meet individual customer needs.

This information is provided by RNS

The company news service from the London Stock Exchange

 

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