Re Contract

RNS Number : 3516K

Balfour Beatty PLC

19 April 2010

 



BALFOUR BEATTY APPOINTED PREFERRED BIDDER FOR £300 MILLION

EALING BUILDING SCHOOLS FOR THE FUTURE PPP CONTRACT

Balfour Beatty, the international infrastructure group, announces today that it has been appointed as preferred bidder by Ealing Council for their £300 million PPP Building Schools for the Future (BSF) programme.

The BSF programme involves the delivery of upgrades and expansions to 14 of the borough's schools, the construction of a new high school in north Greenford as well as significant investment in information communications technology (ICT) in three further schools.

The initial phase of construction, which will commence in October of this year, will involve the complete rebuild of Dormers Wells High School, Southall, and the partial rebuild and remodel of The Cardinal Wiseman RC School, Greenford.  Upgrades of the other schools will commence between 2011-2013, with all construction work completed by 2014.

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

"This preferred bidder award demonstrates Balfour Beatty's continuing strength and expertise in the education sector and is an excellent opportunity for us to draw on the extensive experience gained from our 11 existing PPP education projects.  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 borough."

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.

Balfour Beatty will invest equity of £3.8 million into the delivery of the first sample school, Dormers Wells, with the potential for a total of up to £11.8 million equity investment in the 25-year concession as a whole.

ENDS

Analyst/media enquiries:

Duncan Murray

Balfour Beatty plc

Tel [phone]

Notes to Editors:

1.	In addition to Ealing BSF 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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