JV with local education partnership to build more than 12 schools reaches financial close
Contractor Carillion has sealed the deal on the £300m Tameside Building Schools for the Future contract.
The firm said its joint venture with the local education partnership had reached financial close on the contract, which is part of the £45bn government scheme to rebuild or refurbish every secondary school in the UK by 2020.
Under the deal, the consortium will build 12 schools for £173m by the end of 2012 in the first wave of the programme.
Two of these will be privately financed schemes for which Carillion will provide facilities management over the 25-year concession period.
Carillion is putting forward £3.4m of equity, while its partners - Tameside Metropolitan Borough Council and Building Schools for the Future Investments - are each putting up £400,000. Barclays Bank is lending £50m.
The contractor said that further schools, with a value of around £120m, would be delivered in subsequent waves of the BSF programme during the 10-year construction contract.
John McDonough, Carillion chief executive, said: “Education is a strong growth sector for Carillion and we are delighted to have reached financial close on another major BSF programme.
“We look forward to working with our partners to deliver these new schools and to achieving Tameside Metropolitan Borough Council's vision of providing transformational learning that raises the aspirations and expectations of the people of Tameside.”