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Balfour Beatty PLC 16 June 2003 BALFOUR BEATTY JOINT VENTURE REACHES FINANCIAL CLOSE FOR £100 MILLION ROTHERHAM SCHOOLS PROJECT Balfour Beatty plc, the international engineering, construction and services group, announces today that Transform Schools (Rotherham) Ltd, a concession joint venture between Balfour Beatty plc and Innisfree, has reached financial close for its £100 million PFI schools project for the Metropolitan Borough of Rotherham. The concession contract includes the construction of 10 new schools and the upgrade and refurbishment of a further five. The contract, which covers a mix of both secondary and primary schools, also includes energy management, repairs and maintenance, caretaking, cleaning and catering. Mike Welton, Chief Executive of Balfour Beatty plc, commenting today, said: 'We are delighted to be working with Rotherham Metropolitan Borough Council in providing schools that will offer a much enhanced learning environment and in supporting the Council's objective of raising educational standards across the Borough.' Rotherham Borough Council Leader, Mark Edgell, said: 'This is a real opportunity to transform Rotherham's school buildings. Our pupils and teachers deserve the kind of environment where teaching and learning can flourish. Balfour Beatty has an excellent record of partnership working with other schemes, and we are confident this will be a success.' The concession period will run for 31 years. Construction work, which commenced on 1 April 2003, is scheduled to be complete in 42 months. Facilities management services will commence on 1 April 2004. The project is the largest community schools initiative of its type, incorporating grant aided youth, Life Long Learning and SureStart facilities. Balfour Beatty has worked with Rotherham Borough Council to ensure the new and improved facilities are made available to the widest possible cross-section of the community through a Not for Profit Company - the first time such arrangements have been introduced alongside a PFI contract. A joint venture of Balfour Beatty Construction Limited and Balfour Kilpatrick Limited, the Group's multi-services and power systems business, will assume responsibility for the construction programme. Haden Building Management, also a Balfour Beatty company, will provide facilities management and services. This is the second schools concession won by Balfour Beatty in joint venture with Innisfree. In October 2000, Transform reached financial close with the Stoke-on-Trent City Council for the £153 million Stoke Schools contract, the largest grouped schools project in England, under which the company is building nine new schools and progressively refurbishing the remainder of the entire 122 schools estate. Also in the education sector, Balfour Beatty Construction is the design and build partner in the Babcock and Brown PFI consortium which has reached financial close on three major school developments with a combined construction value of over £81 million. Enquiries to: Tim Sharp Tel: 020 7216 6800 Notes to Editors Balfour Beatty and PPP In addition to its education interests, Balfour Beatty has a range of Public Private Partnerships:- 1. Balfour Beatty has three healthcare concessions, the Edinburgh Royal Infirmary and North Durham Hospital, through Consort Healthcare, and the University College London Hospital. The total construction value of these three projects is approaching £500 million, with more than £330 million accruing through long-term asset management contracts. Balfour Beatty's equity contribution to these three hospital projects is £24 million. Balfour Beatty is also preferred bidder for Blackburn Hospital, which it anticipates will reach financial close in the near future. 2. Balfour Beatty has four road concessions - the A1/M1 Link in Yorkshire through Yorkshire Link, the A50 in Derbyshire and the A30/A35 in Devon and Dorset and, more recently, the M77 motorway in Scotland, through Connect. The equity investment in this sector is £38 million, the construction value is £516 million with associated service contracts in excess of £100 million. 3. As part of the Metronet consortium, Balfour Beatty is responsible for infrastructure development and maintenance for the Bakerloo, Central and Victoria Lines and the Sub-Surface Lines for the London Underground PPP. It is also responsible for the maintenance, operation and development of London Underground's high-voltage power distribution system, as a member of the Seeboard Powerlink joint venture. 4. The Group's prototype involvement in private finance came through its 25.5% interest in Barking Power Station, a project which has operated since 1995 and which was built by a consortium led by Balfour Beatty. 5. The Aberdeen Waste Water project, a 30-year concession for the finance, design, building, operation and maintenance of four water treatment plants in the north of Scotland, reached financial close in 2000. This information is provided by RNS The company news service from the London Stock Exchange
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