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Carillion JV appointed preferred bidder for £208m Nottingham BSF contract

31 January 2008

The construction element of the contract is valued at £180m and Carillion will also provide FM for three of the new schools over the 25-year concession contracts, worth approximately £28m..

Carillion and its joint venture partners, The Local Education Partnership (LEP), has been appointed as the preferred bidder for the £208 million Nottingham Building Schools for the Future (BSF) programme. The LEP will deliver eight secondary schools in the current wave of the BSF programme, primarily through new build with some refurbishment and remodelling. In addition, there is potential to provide three new-build Academy Schools.

Carillion will invest equity of around £2.25m in the project. Work will begin in mid-2008 and will be completed by the end of 2010. The LEP will also deliver further new schools for Nottingham City Council in subsequent waves of the BSF programme and may deliver other community and regeneration projects, subject to receiving the necessary approvals.

Commenting, Carillion chief executive, John McDonough, said: “We are delighted to have achieved preferred bidder status on our third project under the BSF programme, which we expect to be a strong growth market for the Group, reflecting our ability to use our wide range of skills and resources to provide fully integrated solutions.

“Nottingham City Council is a leader in sustainability among local authorities and Carillion’s strength in developing sustainable solutions was an important factor in our success. Working in partnership with Nottingham City Council, we have created a vision for this project to meet the high standards of sustainable development set by the City Council. For example, for new-build schools bio-diesel combined heat and power technology will enable up to 70% of their energy requirements to be generated on site from renewable sources.”

The Local Education Partnership comprises Nottingham City Council, Partnerships for Schools, Carillion and Royal Bank of Scotland. Nottingham City Council and Partnerships for Schools will each provide 10% of the equity, with the remainder being provided by Inspiredspaces, a joint venture between Carillion (40%) and Royal Bank of Scotland (40%). Capita Symonds and its architecture division – Capita Architecture - will be providing partnering, educational, architecture and building design services on the projects.

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