Re Contract

RNS Number : 3173G

Carillion PLC

29 January 2010

 

29 January 2010

Carillion joint venture selected as preferred bidder for £370 million Wolverhampton Building Schools for the Future programme. 

A Carillion-led Local Education Partnership (LEP) has been appointed as the preferred bidder for the £370 million Wolverhampton Building Schools for the Future (BSF) programme, part of the UK Government's £65 billion BSF programme. 

This latest success means that Carillion has now secured, or been appointed as the preferred bidder for, BSF contracts worth around £1.7 billion, further consolidating its position as a leading supplier to the BSF programme. 

The Wolverhampton LEP, comprising Wolverhampton City Council, Building Schools for the Future Investments LLP (BSFI) and Carillion, will deliver 26 schools in four phases over the next four years.  

The first phase of four schools comprises two secondary schools and two Special Educational Needs (SEN) schools with a combined capital cost of approximately £72 million. 

Two schools in the first phase will be privately financed by a combination of borrowing and equity.  The LEP shareholders will contribute approximately £6.4 million of equity, of which Carillion will provide some £5.1 million.  Carillion will also provide facilities management services for the two privately financed schools and these services are expected to generate approximately £24 million of revenue for Carillion over the 25-year concession contract period. 

The subsequent phases of the Wolverhampton BSF programme will deliver the remaining schools at an estimated capital cost of £300 million, some of which will also be privately financed and in which Carillion expects to make further equity investments.

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 programme and brings the total value of the BSF projects that Carillion has secured or for which we are the preferred bidder to some £1.7 billion.

"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."

For further information 

John Denning, Director Group Corporate Affairs, Carillion plc [phone]

Notes to editors

Carillion is the UK's leading support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities.  The Group has annual revenue of over £5 billion, employs around 50,000 people and operates across the UK, in the Middle East, Canada and the Caribbean. 

In the UK, Carillion's principal market sectors are Defence, Education, Health, Facilities Management & Services, Rail, Roads, Building, Civil Engineering and Utilities Services.

In the Middle East, Carillion's principal market sectors are Construction and Facilities Management. In Canada and the Caribbean, the Group's main sectors are Health, Roads Maintenance and Construction.

Carillion's portfolio of equity investments in Public Private Partnership projects includes projects in the UK and Canada, particularly in the Defence, Education, Health and Transport sectors.

In the inaugural Sunday Times Best Green Companies Awards in May 2008, Carillion secured first place in the category for large and medium-sized companies with high environmental impact and second place overall.

This and other Carillion news releases can be found at www.carillionplc.com

 

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