£300m Tameside BSF
17 February 2009
Carillion joint venture reaches financial close on £300 million Tameside Building Schools for the Future PPP contract
Carillion and its joint venture partners in the Local Education Partnership (LEP), have reached financial close on the £300 million Tameside Building Schools for the Future (BSF) programme, which forms part of the UK Government's £45 billion Building Schools for the Future programme.
The LEP, which comprises Tameside Metropolitan Borough Council, Building Schools for the Future Investments Limited and Carillion, will initially deliver twelve secondary and special schools, at a capital cost of £173 million in the current wave of the BSF programme. This wave will include two privately financed schools on which Carillion will begin construction in March 2009 and for which Carillion will provide facilities management services over the 25 year concession period, with an approximate value of £21 million. All 12 schools in the current wave of the BSF programme 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, with Barclays providing some £50 million of debt finance and the LEP members contributing approximately £4.2 million of equity, of which Carillion will provide £3.4 million and the other two members £0.4 million each.
The LEP will deliver further new schools for Tameside Metropolitan Borough Council in subsequent waves of the BSF programme, with an estimated capital value of £120 million, all of which will be completed within the current 10-year contract period.
Commenting, Carillion chief executive, John McDonough, said: 'Education is a strong growth sector for Carillion and we are delighted to have reached financial close on another major BSF programme. We look forward to working with our partners to deliver these new schools and to achieving Tameside Metropolitan Borough Council's vision of providing transformational learning that raises the aspirations and expectations of the people of Tameside.'
For further information:
John Denning, Director Group Corporate Affairs, Carillion plc +44 (0)1902316426
Notes to editors
Tameside is located to the East of Manchester with its administrative centre in Ashton under Lyne. Tameside has been recognised as an 'excellent council' and 'best achieving council of the year' in recent awards.
Carillion is one of the UK's leading support services, Public Private Partnership project and construction companies. The Group has annual revenue of around £5 billion, employs some 50,000 people and operates across the UK, in the Middle East, Canada and the Caribbean.
In the UK, Carillion's principal market sectors are Defence, Education, Health, Facilities Management & Services, Rail, Roads, Building, Civil Engineering and Utilities Services.
In the Middle East, Carillion's principal market sectors are Construction and Facilities Management. In Canada and the Caribbean, the Group's main sectors are Health, Roads Maintenance and Construction.
Carillion has a substantial portfolio of equity investments in Public Private Partnership projects, particularly in the Defence, Education, Health and Transport sectors.
In the inaugural Sunday Times Best Green Companies Awards in May 2008, Carillion secured first place in the category for large and medium-sized companies with high environmental impact and second place overall.
This and other Carillion news releases can be found at www.carillionplc.com
This information is provided by RNS
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