Financial close achieved on deal to deliver 26 schools over the next four years
A Carillion joint venture has achieved financial close on the £370m Wolverhampton Building Schools for the Future (BSF) programme,
The Wolverhampton Local Education Partnership (LEP), comprising Wolverhampton City Council, Building Schools for the Future Investments LLP and Carillion, will deliver 26 schools in five phases over the next four years.
The first phase will comprise two secondary schools and two Special Educational Needs schools with a combined capital cost of about £72m.
Two schools in the first phase will be privately financed by a combination of borrowing and equity. The LEP shareholders will contribute about £6.6m of equity, of which Carillion will provide some £5.2m.
Carillion will also provide facilities management services for the two privately-financed schools and these services are expected to generate about £25m of revenue for Carillion over the 25-year concession contract period.
The remaining 22 schools in the Wolverhampton BSF programme will be delivered in four further phases. Some of these schools will also be privately-financed and Carillion expects to make further equity investments in subsequent phases of the programme.
Commenting, Carillion chief executive, John McDonough, said: “This latest success further consolidates Carillion’s position as one of the UK’s leading suppliers to the Building Schools for the Future and Academy programmes, for which we have now been selected to deliver projects worth nearly £2.2bn.
“The major investment being made in Wolverhampton will provide the City with 26 outstanding new schools. We look forward to working with Wolverhampton City Council and its head teachers and their staff to provide the facilities they need to deliver a first-class learning experience for students.”