27th Sep 2007 07:01
Carillion PLC27 September 2007 27 September 2007 Carillion joint venture appointed preferred bidder for South Tyneside and Gateshead Building Schools for the Future PPP contract valued at £175 million Support services and construction company Carillion with its joint venturepartners (The Local Education Partnership) has been successful in moving forwardas the selected bidder for the £175 million South Tyneside and GatesheadBuilding Schools for the Future (BSF) programme. The Local Education Partnership (LEP) will deliver 14 secondary schools in thecurrent wave of the BSF programme, primarily through new build with somerefurbishment, with a total area of approximately 100,000 square metres. Thiswave of 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 PPP concession contract, which will run for 25 years. Thescope and value of these services are still subject to negotiation and a furtherannouncement will be made about this in due course. The LEP will provide further new schools for South Tyneside and Gateshead insubsequent 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 been selected for our first BSF project under the BSF programme, whichwe expect to be a strong growth area for the Group. "We have built an excellent partnership with South Tyneside and GatesheadCouncils and look forward to working with them to provide state-of-the-artschools that will help them deliver first-class education and other communityfacilities. "The contract also includes the delivery of a £5 million primary care centreco-located with a new council community centre and library, which demonstratesthat this procurement route provides great flexibility for the provision of awide range of community improvement initiatives, including primary healthcarefacilities and other regeneration projects." Notes to editorsThe Local Education Partnership comprises Partnership for Schools, SouthTyneside and Gateshead Councils, Carillion and Royal Bank of Scotland.Partnership 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 is one of the UK's leading support services, construction and PublicPrivate Partnership project companies. The Group has annual revenue of around £4bn and employs over 50,000 people. The Group operates across the UK, in the Middle East and in Canada and theCaribbean. In the UK, the Group 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 sectors are Health, RoadsMaintenance 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, please contact Paula Manning, Group CommunicationsManager on 01902 316444. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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