Re Contract

RNS Number : 9566H

Balfour Beatty PLC

12 November 2008

 



12 November 2008

BALFOUR BEATTY APPOINTED SELECTED BIDDER FOR £200 MILLION SOUTHWARK SCHOOLS FOR THE FUTURE PROJECT

Balfour Beatty, the international engineering, construction, investment and services Group, announces today that Transform Schools, its education sector PPP concession vehicle, has been appointed by the London Borough of Southwark as selected bidder for the £200 million Southwark Schools for the Future programme.  The project involves the delivery of a major capital investment programme over three phases covering thirteen school projects across the Borough.

Commenting on the award, Balfour Beatty Chief Executive, Ian Tyler said:

'This is Transform Schools' third full BSF project following our successes in Knowsley on Merseyside and in Islington. We look forward to utilising our experience in working on eight major PPP education projects in creating first-class new learning environments in Southwark.'

All construction work on the project will be carried out by Balfour Beatty subsidiaries Balfour Beatty Construction and Balfour Kilpatrick, while facilities management will be carried out by Haden Building Management, another Balfour Beatty subsidiary. Transform Schools will also deliver ICT services across all the schools within the programme in conjunction with RM, the leading supplier of ICT solutions to the UK education sector and to the BSF programme.

The project has secured funding under the Department for Children, Schools and Families Low Carbon Schools scheme and will incorporate a number of renewable energy technologies to achieve a reduction in carbon dioxide in use in excess of 60%.  

Financial close is scheduled for the second quarter of 2009 with the first new schools opening in September 2010 and 2011. Balfour Beatty will invest £6 million of equity in the programme.

Transform Schools has three further significant BSF bids currently under customer evaluation with several more such bids in early preparation.

-ENDS-

Enquiries to: 

Tim Sharp

Tel: [phone]

www.balfourbeatty.com 

Notes to Editors 

1.	Balfour Beatty has nine PPP concessions in the education sector, three under the BSF programme at 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 approximately 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 £220 million and is a framework contactor providing construction services to both the £180 million scheme for the Manchester City Council and the £100 million scheme in Liverpool.
3.	Building Schools for the Future (BSF) is the largest single schools capital investment programme for over 50 years. The Government plans to spend some £45 billion over a fourteen year period on the programme. BSF will provide world-class teaching and learning environments for all pupils, teachers and communities in England.
4.	Balfour Beatty is a world-class engineering, construction, services and investment business, well-positioned in infrastructure markets which offer significant long-term growth. We work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise. Our skills are applied in appropriate combinations to meet individual customer needs.

 

END

 

 

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