Financial close reached on contract that will see 40 new schools built in ten years

Carillion has achieved financial close on the £500m Durham Building Schools for the Future programme.

The contractor will deliver 40 schools in four waves over a ten year period in the Durham area.

The first wave, incorporating nine schools with a capital cost of £110m, will be completed by September 2012.

Carillion will contribute £4.6m of equity towards the financing of three privately-funded schools in the first wave. Its other local education partnership shareholders will invest a further £1.2m of equity.

John McDonough, chief executive of Carillion, said: "This latest BSF contract further consolidates Carillion's position as a market leader in delivering the Building Schools for the Future programme and brings the total value of the BSF contracts we have won to date to £1.2 billion."