Balfour Beatty reaches financial close for £450 million Building Schools for the Future project
13 January 2010
Balfour Beatty, the international infrastructure group operating in construction services, professional services, support services and infrastructure investments, announces today that it has reached financial close for the £450 million Blackburn with Darwen and Bolton Councils Building Schools for the Future (BSF) programme.
The project involves the delivery of a major capital investment programme over a number of phases comprising the extensive building, remodelling and operation of nine schools in Blackburn with Darwen by 2015 and the building, remodelling and operation of 15 schools, two special educational needs (SEN) schools and seven pupil referral units (PRU's) in Bolton.
Commenting, Balfour Beatty Chief Executive, Ian Tyler said:
"We are delighted to have reached financial close on this project. We look forward to utilising our previous experience, having already worked on nine major UK PPP education projects, to create new, first-class, learning environments as well as facilities that will be available to the whole community including leisure, learning, sports and ICT provision."
Balfour Beatty Education was appointed as preferred bidder for the scheme in October 2009.
Balfour Beatty will invest equity of £2.6 million into the 25-year PPP concession for the delivery of the first school, Pleckgate High School, with the potential for a total of up to £20 million equity investment in the programme as a whole. Construction work on Pleckgate High School is due to commence imminently.
All construction and facilities management will be carried out by Balfour Beatty. ICT services across all the schools will be delivered in conjunction with Northgate Managed Services, a leading supplier of ICT services and solutions to the UK education sector.
As part of Balfour Beatty's commitment to the local community, it has pledged to target between 40% and 60% of employment on the schools' sites to local people and to engage local businesses as part of the supply chain. Balfour Beatty will also invest in the education and skills base of the local area having launched the Balfour Beatty Education Apprenticeship on this scheme. The project will offer over 25,650 apprenticeship weeks to local residents and employers, in addition to mentoring and work placements, ensuring a lasting skills legacy for the local area.
Balfour Beatty plc
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Notes to Editors:
Balfour Beatty has 11 PPP concessions in the education sector, five under the Building Schools for the Future (BSF) programme at Blackburn with Darwen and Bolton, Newcastle, Southwark, Islington and Knowsley, five in the UK under the previous PPP model at Stoke, Bassetlaw, Rotherham, Birmingham and North Lanarkshire and one in Singapore.
These programmes involve the construction of over 100 new schools and learning centres and upgrading and maintaining well over 100 others. Balfour Beatty has over £60 million of committed equity in the sector.
Balfour Beatty companies are construction partners in a number of other PPP schools schemes including the BSF schemes in Hackney, Haringey and Greenwich with a total contract value of over £320 million and are framework contractors providing construction services to the £91 million scheme for North Lanarkshire Council, the £180 million scheme for Manchester City Council and the £100 million scheme in Liverpool.
Balfour Beatty has a substantial investment portfolio, largely through the UK PPP/PFI programme. This portfolio consists of:
- Nine major hospitals
- Ten major schools schemes in the UK and a technical education centre in Singapore
- Six roads schemes and three street lighting projects
- The London Underground power system
- A waste water scheme
- A coastal defence pathfinder PPP
- Barking Power Station (non-PPP)
- Exeter International Airport (non-PPP)
- Blackpool International Airport (non-PPP)
In the US, Balfour Beatty is responsible for the development, renovation, operation and management of military privatisation housing projects for the US Departments of the Army, Navy and Air Force. Balfour Beatty is a leader in the military housing industry and provides services to members of the US military and their families residing on or near bases located in 20 states and Washington, DC.
Balfour Beatty (www.balfourbeatty.com) is a world-class infrastructure group operating in construction services, professional services, support services and infrastructure investments.
We work in partnership with our customers principally in the UK, the US, South-East Asia and the Middle East, who value the highest levels of quality, safety and technical expertise.
Our key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation) and commercial (offices, leisure and retail). We deliver services essential to the development, creation and care of these infrastructure assets including investment, project design, financing and management, engineering and construction, and facilities management services.
Balfour Beatty employs more than 50,000 people around the world.