The Education Funding Agency has appointed Carillion and Equitix for the £190m Midlands privately financed batch of Priority School Building Programme schools.
Carillion and Equitix will finance, design, build and provide hard facilities management over 25 years for eight schools in the Midlands as part of the PSBP.
The joint venture beat shortlisted bidders Bam and Interserve/Kajima to the batch of secondary schools in Birmingham, Coventry, Derbyshire, Nottingham and Sandwell.
It will be delivered under the government’s private finance 2 programme, with 90 per cent of the funding requirement consisting of private finance raised by investment consortium the Amber Consortium.
The remaining 10 per cent of the funding requirement will be made up of 80 per cent equity from the main contractor and 20 per cent equity from the public purse.
Carillion said it expects to invest up to £9m of equity in the project, which will generate construction and services revenues of around £190m over the life of the 27-year construction and concession contract.
It is the fifth and final privately financed batch of priority schools to appoint a preferred contractor.
Contractors delivering PF2 schools batches:
- Herts, Luton and Reading (£150m): Interserve/Kajima
- North-east (£120m): Miller Construction (now Galliford Try)
- North-west (£120m): Morgan Sindall
- Yorkshire (£120m): Laing O’Rourke
- Midlands (£190m): Carillion/Equitix
Carillion chief executive Richard Howson said: “Carillion is a market leader in the education sector having delivered around 180 new schools and academies through a combination of privately and publicly financed projects.
“This is the second major PPP project in the UK for which we have been selected as the preferred bidder this year, following our success in being selected for the Aberdeen Western Peripheral Route in which we will invest some £20m of equity and from which we expect to generate around £175m of construction revenue.”
The PSBP is the government’s flagship programme to rebuild the schools in the most urgent need of repair in England.
Schools in the Midlands batch:
- Alfreton Grange Arts College, Derbyshire
- ARK Kings Academy, Birmingham
- Greenwood Academy, Birmingham
- Plantsbrook School, Birmingham
- President Kennedy School, Coventry
- The Phoenix Collegiate, Sandwell
- The Queen Elizabeth Academy, Warwickshire
- Top Valley Academy, Nottingham