A Carillion joint venture has reached financial close on the Midlands priority school building programme, a private finance concession contract.
The new Queen Elizabeth Academy in Atherstone Carillion Construction will build eight schools at a capital cost of £138m. Carillion AMBS will carry out building maintenance and facilities management over the 25-year life of the concession contract,generating an additional £49m of revenue, approximately, over the full term.
Carillion expects to invest £5.5m of equity in the project. The contract is a public private partnership using the government's PF2 model.
PSBP Midlands Limited, a special purpose vehicle created by a 50:50 joint venture of Carillion and Equitix will be responsible for the delivery of the schools.
The new schools will be constructed over a two-year period to replaced existing school facilities. These are:
- Alfreton Grange Arts College, Derbyshire
- ARK Kings Academy, Birmingham
- Greenwood Academy, Birmingham
- Plantsbrook School, Birmingham
- President Kennedy School, Coventry
- The Phoenix Collegiate, Sandwell
- The Queen Elizabeth Academy, Warwickshire
- Top Valley Academy, Nottingham
Carillion chief executive Richard Howson said the deal was “an excellent example of collaboration between the public and private sectors”.