14th Dec 2007 07:01
Costain Group PLC14 December 2007 Costain Group PLC ("Costain" or the "Group") Financial Close on Lewisham BSF Costain is pleased to announce that its joint venture with VT Group ("Learning21") has reached financial close on a partnership agreement with the London Borough of Lewisham ("Lewisham") to deliver enhanced education servicesover the next 25 years. This is part of the Government's Building Schools forthe Future ("BSF") programme. This partnership agreement includes an initial PFI contract, with a £56 millioncapital value to Costain, to design and build two secondary schools at Sedgehilland Catford, where construction is already underway. Associated ICT andfacilities management services will be carried out by VT Group. Costain and VT Group will each invest 40% in the PFI special purpose vehiclewith Lewisham and Building Schools for the Future Investments together takingthe remaining stake. Under the partnership agreement, Costain will then negotiate future phases forthe design and build of a further seven secondary schools and three specialneeds schools. The total anticipated capital value of these works is £210million, of which 50% will be procured under PFI. Commenting on the award, Andrew Wyllie, Chief Executive of Costain, said: "We are pleased to have reached financial close on this prestigious BSF project,on which we are already very active. Along with our other major BSF project, inBradford, where we are on site with three new secondary schools worth over£70m, this strengthens Costain's position in this key sector." 14 December 2007 Enquiries: Costain Tel: 01628 842 444Andrew Wyllie, Chief ExecutiveTony Bickerstaff, Finance DirectorGraham Read, Public Relations College Hill Tel: 020 7457 2020Mark GarrawayMatthew Gregorowski This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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