18th Dec 2006 07:01
Balfour Beatty PLC18 December 2006 18 December 2006 BALFOUR BEATTY APPOINTED PREFERRED BIDDER FOR ============================================= £157 MILLION KNOWSLEY BUILDING SCHOOLS FOR THE FUTURE ===================================================== PPP PROJECT =========== Balfour Beatty, the international engineering, construction and services group,announces today that its specialist education PPP concession company, TransformSchools, has been appointed preferred bidder by Knowsley Metropolitan BoroughCouncil on Merseyside for the £157 million PPP concession to construct seven newlearning centres under the Building Schools for the Future (BSF) programme. The concession which is for 25 years is anticipated to reach financial close inthe spring of 2007. It will provide seven state-of-the-art learning centreswhich will replace all of the Borough's existing secondary schools over a 3-yearperiod. Transform Schools will work with Knowsley Council not only in the building andmanagement of the new premises, but also in the further development of a cleareducational vision through researching and evaluating progressive learningenvironments and teaching models in the UK and internationally. The partnershipmay also involve the development of a not-for-profit company to manage theextended use of the facilities and an employment and training hub to maximiselocal employment, training and development opportunities. Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said: "We are delighted to have been chosen by Knowsley Council to be their partner inthis exciting project which will transform education provision in the area. Webring the experience gained not only from our work on five major schools PFIschemes butalso lessons learned from project-based learning schemes in the UK, US,Australia and Asia." Councillor Ron Round, Leader of Knowsley Council said: "This is a very exciting stage in the Building Schools for the Future programme.We are a step closer to making our dreams to transform education in the borougha reality. No other local authority in the BSF programme has such ambitious plans asKnowsley to replace all of its existing buildings. This shows our vision andcommitment to improving the opportunities for all our residents. We now lookforward to working with Transform and unveiling our exciting plans early in thenew year." Construction and building services work under the contract will be carried outby Balfour Beatty Construction and Balfour Kilpatrick. The maintenance of theschools will be undertaken by Haden Building Management, also a subsidiary ofBalfour Beatty. Balfour Beatty will invest £19 million of equity in the project which will bringits overall equity commitment to the education sector up to almost £50 million. It is Balfour Beatty's sixth major schools PFI project and its first as aconcession company under the BSF scheme. Its projects at Stoke and Rotherham arein their sixth and fourth year of operation, respectively. Projects in NorthLanarkshire and Bassetlaw began in the summer of 2005 and its Birmingham PP2concession became operational in April of this year. The company is also one of the two framework contractors who are providingconstruction services to the £160 million BSF scheme for Manchester CityCouncil. In his recent pre-budget statement, Chancellor Gordon Brown reconfirmed hiscommitment to rebuilding or renewing every one of England's 3,500 statesecondary schools over a 15-year period at a total cost of over £45 billion. ENDS Enquiries to:- Tim SharpTel: 020 7216 6884www.balfourbeatty.com Notes to Editors: 1) Balfour Beatty's other schools PFI projects are: - for Stoke City Council (13 new schools and numerous new extensions in a 25-year concession worth £153 million) - for the Metropolitan Borough of Rotherham (10 new schools and five refurbished schools plus energy management, repairs and maintenance, caretaking, cleaning and catering in a 30-year concession worth £100 million in construction and £40 million in long-term services) - for North Lanarkshire Council (24 new schools in a 30-year concession worth £140 million in construction and up to £100 million in long term services - preferred bidder) - for Nottinghamshire County Council (Bassetlaw Grouped Schools - five new secondary schools, a new special school and two new centres for post-16 education in a 25-year concession worth £123 million in construction and in excess of £100 million in long-term services - preferred bidder) - for Birmingham City Council (12 new and refurbished schools, including two secondary schools, nine primary schools and one early years centre £56 million of construction work, £40 million in long-term services) 2) Transform Schools won both Best Operational Education Project and the overall top prize of Best Operational Partnership (All Sectors) at the 2004 Public Private Finance Awards for its 25-year Stoke Schools concession. In May 2006 its Rotherham project won Best Operational Educational Project under the same award scheme. 3) Balfour Beatty is undertaking all design and construction work for schools in East Lothian in a contract worth some £40 million under the PPP concession for that council. 4) Balfour Beatty is providing all design and build services for Babcock and Brown in its schools PFI projects. Work secured under this arrangement to date exceeds £80 million, including the construction of five new schools in Calderdale, West Yorkshire. 5) Balfour Beatty is a world-class engineering, construction and services group, well-positioned in infrastructure markets which offer significant growth potential. Its partnerships with public and private customers generate secure, long-term income. Its financial position, with significant net cash and with strong operating cash flows, offers continuing flexibility to add additional capacity and expertise to the business mix and to make appropriate investments in PPP/PFI and other long-term growth opportunities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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