Skanska consortium achieves Financial Close on £172 million PPP Scottish Schools Scheme

Press release 14/07/2006 00:00 CET

A consortium comprising Skanska and the PFI Infrastructure Company (PFI Co) has achieved Financial Close on the 30-year, £172 million Midlothian Schools PPP Scheme – its second high profile education scheme to close this month, following the financial close of the first Building Schools for the Future programme in Bristol.

Under the contract, Skanska and PFI Co will design, construct, finance and operate eight new primary schools for Midlothian Council, providing completely new education facilities for the Council, covering a total built area of 20,000 square metres. The first six schools will be completed for the start of the new academic year in August 2007, with all schools being completed by October 2007.

Skanska and PFI Co are providing equity investment on a 50:50 basis. Following the completion of the construction of the new schools, Skanska will provide services and maintenance across all seven sites for a period of 30 years. The project has a capital value of £41.2 million and an annual FM value of £0.8 million. Skanska and PFI Co are each investing £1.65 million.

“We are delighted to have reached financial close on this project and now are looking forward to delivering very exciting primary schools for Midlothian Council,” said Barry White, Director of Education, Skanska. “Work has just started on site and we look forward to completing the schools to allow the local communities to benefit from these wonderful facilities as soon as possible.”

Jo Elliot, chief executive of Quayle Munro Ltd, the manager of PFICo, said: “This is an excellent project for the people of Midlothian and PFICo is very pleased to be in long-term partnership with Skanska in making it a reality, extending our commitment to the key education sector.”