29th Jun 2006 07:00
AMEC PLC29 June 2006 AMEC plc29 June 2006 AMEC JV reaches financial close on UK's largest schools PFI project AMEC plc, the international project management and services company, announcesthat the AMEC-led InspirED joint venture has today reached financial close onthe UK's largest schools PFI project. Highlights: • InspirED a joint-venture between AMEC, Innisfree and Equion (a division of John Laing), granted 30-year PFI concession to deliver 17 new and two refurbished secondary schools for South Lanarkshire Council • Total capital value of £319m • AMEC to invest £8.4m equity • AMEC to benefit from multiple income streams together worth more than £400m, including contracts to design, construct and refurbish the schools, redevelop surplus land around 12 of the sites and provide estate-management services • The first school is due to be delivered by August 2007 and final completion in mid-2009 • At 31 December 2005 AMEC's portfolio of 11 existing PPP projects was valued at £109m, substantially ahead of the book value of £66m • AMEC is also shortlisted for two further projects in Scotland, a schools project at East Dunbartonshire and a hospital project at Fife, as well as the Knowsley Building Schools for the Future project and St Luke's Hospital in Middlesbrough Sir Peter Mason, chief executive of AMEC, said:"In the UK, PPP remains a major government procurement route which is attractiveto AMEC as it enables us to combine our investment, design, development,delivery and maintenance expertise to deliver both a complete solution toclients and maximise shareholder value. Given the recent disappointing news thatColchester General Hospital will not proceed, we are delighted to have finalisedthis prestigious, substantial and complex project to timetable." The leader of South Lanarkshire Council, Councillor Eddie McAvoy, confirmed hisdelight at the Council securing the largest Schools Modernisation Programme inScotland. "This tangible investment in education will undoubtedly enhance thewhole of the Council's learning curriculum. It is an illustration of ourcommitment to the education of our children, young people and to the widercommunity as the schools' leisure facilities will also be open for communityuse. Of equal importance is the Council's ability to retain its entire staff. " The InspirED joint venture has successfully raised £320m in Guaranteed SecuredIndex-Linked Bonds a process managed by Barclays Capital with the triple-A ratedfinancial guarantee issued by XL Capital Assurance (U.K.) Limit. Contacts: AMEC plc +44 (0)20 7634 0000Neil Jamieson, Director of Investor RelationsJuliet Sychrava, Director of Corporate CommunicationsCharles Reynolds, Head of Media Relations AMEC is an international project management and services company that designs,delivers and supports infrastructure assets for customers worldwide across thepublic and private sectors. In 2005, AMEC employed 45,000 people in more than 40countries, generating annual revenue of around £5 billion. AMEC's shares aretraded on the London Stock Exchange where the company is listed in the SupportServices sector (LSE: AMEC.L). Innisfree is the leading infrastructure investment group in the UK sponsoringand making long term investments in PFI and PPP infrastructure projects.Innisfree currently has a platform of 47 PFI infrastructure projects with acapital value of some £8 billion covering health, education, transport andgovernment accommodation. Innisfree is the largest private sector investor inPFI education projects in the UK. It has current commitments of some £90 millionto 16 education projects costing £1.3 billion. These comprise over 270 schoolseducating over 100,000 children. Equion, a division of John Laing plc (LSE: LNGO), is a specialist provider offacilities in the PFI and PPP markets with a long-term perspective and approach.The company manages and delivers projects from planning and funding through todesign, construction and operation. It is actively involved in the management ofa wide range of education, health, police, defence and special purposegovernment facilities www.laing.com. Barclays Capital is the investment banking division of Barclays Bank PLC whichhas an AA long-term credit rating and a balance sheet of over £924 billion. Witha distinctive business model, Barclays Capital provides large corporate,government and institutional clients with solutions to their financing and riskmanagement needs. Barclays Capital has offices in 26 countries, employs over9,000 people and has the global reach and distribution power to meet the needsof issuers and investors worldwide. XL Capital Assurance (U.K.) Limited is a wholly owned subsidiary of XL CapitalAssurance Inc. (XLCA). XLCA - rated triple-A by Moody's Investors Service,Standard & Poor's Ratings Service, and Fitch Ratings - is a monoline financialguarantee company that provides triple-A rated credit enhancement for theobligations of debt issuers worldwide. For more information, please visitwww.xlca.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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