business

Carillion JV seals £187m schools contract

Black Country group will build three new schools in Birmingham as part of wider programme to deliver eight new sites across the Midlands

Support services group Carillion has reached financial close on a building programme of schools which is expected to generate £187 million in revenue.

A joint venture called PSBP Midlands will lead the Midlands Priority School Building Programme which is a 25-year private finance concession contract using the UK Government's PF2 model.

The programme will improve education facilities and replace outdated buildings in eight schools including ARK Kings Academy, Greenwood Academy and Plantsbrook School in Birmingham, Phoenix Collegiate in Sandwell and Queen Elizabeth Academy in Warwickshire.

The new schools will be constructed over a two-year period.

Wolverhampton-based Carillion expects to invest £5.5 million of equity in the project and it 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.

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."

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