Skanska has been named preferred bidder for a £1bn deal to develop, construct and maintain three schools for Essex County Council as part of the Building Schools for the Future programme.
It beat contractor Carillion to the deal that will see it assume responsibility for the financing, design and construction of the new schools, as well as the maintenance of the schools for a total of 26 years commencing in 2011.
Skanska Infrastructure Development’s investment is estimated to amount to approximately £6M, corresponding to a majority holding in the consortium that is responsible for the project. The consortium also includes RM plc, which is responsible for the schools’ information and communications systems. RM plc is an international provider of education solutions and the UK’s leading provider of ICT software, systems and infrastructure for schools.
The project comprises three new schools to be developed in cooperation with the local authorities within the Essex Local Education Partnership of which the Skanska-RM consortium holds an 80% share. The partnership covers a total period of ten years and further schools will be developed in future phases.
Construction will be carried out by Skanska UK, which will also design and build a fourth school in addition to the three in this PFI agreement. The contract for the four schools is estimated to amount to approximately £70M.
Financial close for this contract, including the completion of negotiations and financing, is expected during 2010.
Skanska already operates the UK’s first LEP through the Bristol BSF programme and has investments in two other PFI schools projects in the UK. Skanska’s other major PFI projects in the UK include the widening of the M25 motorway, the street lighting network in Surrey and several large hospitals, such as Barts and The London Hospitals.
Skanska Infrastructure Development is a leader in the global Public Private Partnerships (PPP) market. The business unit invests in, develops and operates roads, hospitals, schools, power plants and other social infrastructure in partnership with the public sector.