Re Contract

RNS Number : 9136N

Balfour Beatty PLC

21 June 2010

 



BALFOUR BEATTY APPOINTED PREFERRED BIDDER FOR £231 MILLION

DERBY BUILDING SCHOOLS FOR THE FUTURE PROJECT

Balfour Beatty, the international infrastructure group, announces today that it has been appointed as preferred bidder by Derby City Council for their £231 million Building Schools for the Future (BSF) programme.

This BSF Programme involves the design and new build or refurbishment of 14 schools in the city with  funding for three schools to be raised through a Balfour Beatty led PPP 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 provider of ICT educational solutions.

The initial phase of the scheme will begin in November of this year with the new build of Noel-Baker Community School and Language College and St Martins School, together with the major refurbishment of Derby Moor Community Sports College.  All of these schools are scheduled to open for the new academic year in September 2012.  Upgrades and new builds of the other schools will commence once financial close has been achieved with all work to be completed for the new academic year in September 2014.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

"We are delighted by this preferred bidder award and the opportunity to further strengthen our relationship with the City of Derby.  We look forward to developing a Local Education Partnership with the Council and Partnerships for Schools to deliver excellent design and value for all schools in the programme, as well as maximising the economic benefit to the City."

Balfour Beatty will invest equity of £6.6 million into the 25-year concession to operate and maintain the school facilities and provide related services for the three PPP schools.

ENDS

Enquiries to:

Duncan Murray

Balfour Beatty plc

Tel [phone]

www.balfourbeatty.com

Notes to Editors:

1.	In addition to the Derby BSF and Ealing BSF schemes at preferred bidder stage, 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 £95 million scheme in Hartlepool, 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: § North West Fire and Rescue, fire stations upgrade (preferred bidder) § Nine major hospitals § Ten major schools schemes in the UK, Ealing BSF at preferred bidder and a technical education centre in Singapore § Six roads schemes and four street lighting projects § The London Underground power system § A coastal defence pathfinder PPP § 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 operating in construction services, professional services, support services and infrastructure investments. We work in partnership with our customers principally in the UK, the US, South-East Asia and the Middle East, who value the highest levels of quality, safety and technical expertise. Our 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).  We deliver 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 more than 50,000 people around the world.

 

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