3rd Jan 2008 07:00
Carillion PLC03 January 2008 3 January 2008 Carillion joint venture achieves financial close on South Tyneside and Gateshead Building Schools for the Future PPP contract valued at £175 million Support services and construction company Carillion and its joint venturepartners, The Local Education Partnership (LEP), have achieved financial closeon the £175 million South Tyneside and Gateshead Building Schools for the Future(BSF) programme. The LEP will deliver 14 secondary schools in the current wave of the BSFprogramme, with a total area of approximately 100,000 square metres. This waveof the programme will also include the provision of healthcare facilities. As well as investing some £2 million of equity in the project, Carillion willcarry out the construction work in three phases over four years, starting inJanuary 2008 with all schools open to pupils by January 2012. Carillion will also provide facilities management services for the new schoolsover the life of the 25-year concession contract, to the value of approximately£16 million. This involves the delivery of FM services including mechanical,electrical and building fabric maintenance, caretaking, security, cleaning andgrounds maintenance services and full life cycle responsibility.The LEP will also provide further new schools for South Tyneside and Gatesheadin subsequent waves of the BSF programme and may deliver other communityregeneration projects, subject to these receiving the necessary approvals. Commenting, Carillion chief executive, John McDonough, said: "We are delightedto have achieved financial close on our first project under the BSF programme,which we expect to be a strong growth area for the Group. We have built anexcellent partnership with South Tyneside and Gateshead Councils that hasresulted in financial close being achieved in just 12 weeks. We look forward todeveloping this successful partnership to deliver the 'Education Vision' forboth Councils with state-of-the-art community focused schools. "The contract also includes the delivery of a £5 million primary care centreco-located with a new council community centre and library and demonstrates theflexibility of this procurement route for providing a wide range of communityimprovement initiatives." - Ends - Notes to editors The Local Education Partnership comprises Partnership for Schools, SouthTyneside and Gateshead Councils, Carillion and Royal Bank of Scotland.Partnerships for Schools and South Tyneside and Gateshead Councils will provide20% of the equity with the remainder being provided by Inspired Spaces, a jointventure between Carillion (40%) and Royal Bank of Scotland (40%). Information technology will be provided by Morse with the design team comprisingRyder Architects, Cundalls Engineers and Colour Landscape as architects.Carillion plc is one of the UK's leading support services, construction andPublic Private Partnership project companies. The Group has annual revenue ofaround £4bn, employs over 40,000 people and operates across the UK, in theMiddle East, Canada and the Caribbean. In the UK, Carillion has eight principal market sectors - Defence, Education,Health, Building, Facilities Management and Services, Roads, Rail and CivilEngineering. In the Middle East, the Group's two principal market sectors are Constructionand Facilities Management. In Canada and the Caribbean, the Group's main sectorsare Health, Roads Maintenance and Construction. The Group is a leader in Public Private Partnership projects, particularly inthe Defence, Education and Health sectors in the UK and in the Health sector inCanada. Carillion's education portfolio includes Leeds, Renfrewshire and South Ayrshireschools. This and other news releases relating to the Group can be found atwww.carillionplc.com. For further information on Carillion:John Denning, Director Group Corporate Affairs, Carillion plc 01902 316426 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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