31st May 2007 07:01
Balfour Beatty PLC31 May 2007 31 May 2007 BALFOUR BEATTY APPOINTED PREFERRED BIDDER FOR £140 MILLION ISLINGTON BUILDING SCHOOLS FOR THE FUTURE 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 Islington Council for the£140 million PPP concession to deliver all eight secondary schools and two pupilreferral units under the Building Schools for the Future (BSF) programme. The concession, which is anticipated to reach financial close at the end of thisyear, will be delivered in three phases, commencing in early 2008, over afive-year period. The project is Transform Schools' first full BSF contract which will see thecompany establishing a Local Education Partnership (LEP) in joint venture withthe borough. In addition, Transform will become responsible for the facilitiesmanagement services and, with our partner RM Education, will design andimplement a sophisticated ICT service, including a virtual learning environment. Balfour Beatty will invest £4 million of equity in the initial project whichwill bring its overall equity commitment to the education sector up to almost£54 million. 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. Commenting today, Balfour Beatty Chief Executive, Ian Tyler said: "This award demonstrates Balfour Beatty's continuing strength and expertise inthe education sector. We are delighted to have been chosen as IslingtonCouncil's partner to deliver the borough's secondary schools investmentprogramme. It is Balfour Beatty's seventh major schools PFI project and itssecond as a concession company under the BSF scheme." Balfour Beatty also has long-standing projects at Stoke and Rotherham, in theirseventh and fifth year of operation, respectively, projects in North Lanarkshireand Bassetlaw and its Birmingham PP2 concession. Councillor Ursula Woolley, commenting today, said: "This is a huge step forwards for education in Islington. We need to get itright, which is why our standards for choosing a BSF partner were so high. We'vebeen clear the whole time that the new school buildings need to welcome, inspireand support all Islington pupils to help them achieve their full potential.Investing in our secondary schools and the future of all our young people is atop priority for the council - which is why we're putting millions of poundsinto it. "So there's plenty to look forward to, but much to celebrate already. Islingtonschools have never been better. Exam results are at their highest level ever,and Ofsted consistently gives the borough's schools the thumbs up. Things havenever looked brighter for education in Islington." Tim Pearson, CEO, RM, commenting today, said: "ICT has a key role to play in the school of the future; it can transform theway teachers work and, of course, for pupils it's part of everyday life.Islington Council set high standards for its BSF project; we look forward toworking with them, and our Transform Schools partners, to make education evenbetter in Islington." 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. The company is also one of the two framework contractors who are providing construction services to the £160 million BSF scheme for the Manchester City Council and is providing all design and build services for Babcock and Brown in its schools PFI projects, with work secured under this arrangement to date exceeding £80 million. 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 a world-class engineering, construction, services and investment business, well positioned in infrastructure markets which offer significant long-term growth. We work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise. Our skills are applied in appropriate combinations to meet individual customer need. 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 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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