Re Contract

RNS Number : 2256X

Balfour Beatty PLC

02 December 2010

 



BALFOUR BEATTY REACHES FINANCIAL CLOSE FOR

DERBY CITY BUILDING SCHOOLS FOR THE FUTURE PROJECT

Balfour Beatty, the international infrastructure group, announces today that it has reached financial close for the £55 million Derby City Building Schools for the Future (BSF) programme.

The Derby City BSF Partnership project involves the delivery of a capital investment programme for schools in Derby in partnership with Derby City Council. 

Construction of a new PPP secondary school, Noel Baker and St Martin's School, which brings the co-location of a mainstream secondary school with that of a school for pupils with special education needs, will start in January 2011.  The extensive remodelling of Derby Moor School, a design and build secondary school project, will also start in January 2011.

Balfour Beatty Chief Executive, Ian Tyler, said:

"We look forward to working in close partnership with Derby City Council to create new, first-class, learning environments as well as facilities that will be available to the whole community including leisure, learning, sports and ICT provision."

Balfour Beatty Education was appointed as preferred bidder for the scheme in June 2010.

Balfour Beatty will invest equity of £3 million into the 25-year concession.

All construction and facilities management will be carried out by Balfour Beatty.  ICT services across all the schools will be delivered in conjunction with RM, a leading supplier of ICT services and solutions to the UK education sector.

As part of Balfour Beatty's commitment to the local community, it has pledged an economic benefits package which includes 1,040 apprenticeship weeks of training throughout the construction period, through the recently-launched Balfour Beatty Apprenticeships programme; mentoring and work placements to pupils in Derby; employment for local residents, and work packages for local employers, ensuring a lasting skills legacy for the local area.

ENDS

Analyst/investor enquiries:

Basak Kotler

Balfour Beatty plc

Tel [phone]

Media enquiries:

Duncan Murray

Balfour Beatty plc

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This document contains forward looking statements which have been made in good faith based on the information available at the time of its approval.  It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of risks and uncertainties that are inherent in any forward looking statement which could cause actual results to differ materially from those currently anticipated.

Notes to Editors:

1.	Balfour Beatty has 11 PPP concessions in the education sector, five under the Building Schools for the Future (BSF) programme at Blackburn with Darwen and Bolton, Newcastle, Southwark, Islington and Knowsley, five in the UK under the previous PPP model at Stoke, Bassetlaw, Rotherham, Birmingham and North Lanarkshire and one in Singapore.  These programmes involve the construction of over 100 new schools and learning centres and upgrading and maintaining well over 100 others. Balfour Beatty has over £60 million of committed equity in the sector.
2.	Balfour Beatty companies are construction partners in a number of other PPP schools schemes including the BSF schemes in Hackney, Haringey and Greenwich with a total contract value of over £320 million and are framework contractors providing construction services to the £91 million scheme for North Lanarkshire Council, the £180 million scheme for Manchester City Council and the £100 million scheme in Liverpool.
3.	Balfour Beatty has a substantial infrastructure investments portfolio. This portfolio consists of: Nine major hospitals Ten major schools schemes in the UK and a technical education centre in Singapore Seven roads schemes (including the N17/N18 Gort to Tuam roads in Ireland at preferred bidder) and four street lighting projects The London Underground power system A coastal defence pathfinder PPP North West Fire and Rescue fire station upgrade (at preferred bidder) Thanet offshore transmission network (at preferred bidder) Barking Power Station (non-PPP) Exeter International Airport (non-PPP) Blackpool International Airport (non-PPP) 17 US military housing projects for the Army, Navy and Air Force, on or near bases located in 20 states and Washington, DC Florida Atlantic University student accommodation
4.	Balfour Beatty (www.balfourbeatty.com) is a world-class infrastructure group with capabilities in construction services, professional services, support services and infrastructure investments. We work in partnership with our customers principally in the UK, continental Europe, the US, South-East Asia, Australia and the Middle East, who value the highest levels of quality, safety and technical expertise. Key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation) and commercial (offices, leisure and retail). The Group delivers services essential to the development, creation and care of these infrastructure assets including investment, project design, financing and management, engineering and construction, and facilities management services. Balfour Beatty employs 50,000 people around the world.

 

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