Re Contract

RNS Number : 2136S

Balfour Beatty PLC

14 May 2009

 



14 May 2009 

BALFOUR BEATTY REACHES FINANCIAL CLOSE FOR £200 MILLION

SOUTHWARK BUILDING SCHOOLS FOR THE FUTURE PPP PROJECT

Balfour Beatty, the international engineering, construction, investment and services Group, announces today that Transform Schools, which manages Balfour Beatty Capital's schools schemes, has reached financial close for the £200 million Southwark Schools for the Future secondary programme.

The project involves the delivery of a major capital investment programme over three phases covering 12 schools across the Borough.

Commenting, Balfour Beatty Chief Executive, Ian Tyler said:

'We are delighted to have reached financial close on Southwark Schools for the Future. We look forward to using our experience of working on eight major PPP education projects to create first-class new learning environments in Southwark.'

Transform Schools was appointed selected bidder in November 2008.  

All construction and facilities management will be carried out by Balfour Beatty. ICT services across all the schools within the programme will be delivered 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%.

New schools in Southwark in the first phase are scheduled to open in September 2010 and January 2011. 

Earlier this month Balfour Beatty announced it had reached financial close on the £170 million Fife General Hospital and Maternity Services PPP project.

ENDS

Analyst/media enquiries:

Duncan Murray

Balfour Beatty plc

Tel [phone]

www.balfourbeatty.com

Notes to Editors:

1.	Balfour Beatty has nine PPP concessions in the education sector, three under the Building Schools for the Future (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 approximately £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 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.  BSF will provide world-class teaching and learning environments for all pupils, teachers and communities in England.
4.	Balfour Beatty has a substantial existing investment portfolio, largely through the UK PPP/PFI programme. This portfolio consists of: Nine major hospitals Seven major schools schemes in the UK and a technical education centre in Singapore Four roads schemes and three street lighting projects The London Underground power system A waste water scheme A coastal defence pathfinder PPP Barking Power Station (non-PPP) Exeter International Airport (non-PPP) Blackpool International Airport (non-PPP) In the US, Balfour Beatty Communities is responsible for the development, renovation, operation and management of military privatisation housing projects for the US Departments of the Army, Navy and Air Force. The company is a leader in the military housing industry and provides services to members of the US military and their families residing on or near bases located in 20 states and Washington, DC.
5.	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.

 

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