A consortium comprising Skanska and The PFI Infrastructure Company plc (PFI Co) has been selected as preferred bidder on a 30-year, £70 million Public Private Partnership project to design, construct, finance and operate eight new primary schools for Midlothian Council in Scotland.
Under the contract, the consortium will provide completely new education facilities for the Council, covering a total area of 20,000 square metres. The first two schools will be completed for the start of the new academic year in August 2006 with all schools being completed by February 2007. Financial close is expected in October this year, when work on site will begin.
Skanska and PFI Co will provide equity investment for the schools on a 50:50 basis. Following construction completion, Skanska will provide services and maintenance of the new schools for a period of 30 years.
The consortium partners have an excellent track record in delivering PFI/PPP schemes. Skanska has completed over £1.3 billion worth of schemes in the Education, Transportation, Custodial, Healthcare and Defence sectors. The company is currently constructing a further £670 million worth of projects with a further £1.3 billion at preferred bidder stage. In the Education sector, Skanska has completed schools in the London Boroughs of Newham and Redbridge and is currently nearing completion on two secondary schools for the London Borough of Bexley.
PFI Co is the first listed investment vehicle dedicated to PFI equity. The company was formed in July 2004 when it raised £47 million on AIM. It has investments in 15 PFI projects including 7 education projects.
Quayle Munro, manager of PFI Co, is one of the UK’s most experienced PFI/PPP specialist finance organisations with a long track record in education. Its first major project was the Falkirk Schools PFI, which is now five years into operation.
Commenting on this latest success, Barry White Skanska’s Director of Education said: “I am absolutely delighted that we have been chosen to be Midlothian Council's partner for the delivery of these wonderful primary schools - when built they will provide highly innovative state of the art learning facilities". Jo Elliot, Chief Executive of Quayle Munro added, ”We are pleased to be working in partnership once more with Midlothian Council, having assisted them in the delivery of their first PFI schools project which reached financial close in 2002.