Carillion wins BSF contracts in Durham and Rochdale

26 August 2009

BSF construction and FM contracts valued at £500m and £192m have been won by Carillion in Durham and Rochdale, respectively.

Durham BSF: Carillion and its JV partners in the Local Education Partnership (LEP), have achieved financial close on the £500m Durham Building Schools for the Future (BSF) programme. The LEP, comprising Durham County Council, Building Schools for the Future Investments LLP (BSFI) and Carillion, will deliver over 40 schools in four waves over the 10-year contract period.
The first wave of nine schools, which comprises seven secondary schools, one Special Educational Needs (SEN) school and one primary school, has a combined capital cost of approximately £110 million and will be completed by September 2012. Three schools in the first wave will be privately financed by a combination of borrowing and equity. Carillion will also provide facilities management services for the three privately financed schools, worth approximately £25m over the 25-year concession period.
The three subsequent waves of the Durham BSF programme will deliver the remaining schools with an estimated capital cost of £390 million.

Rochdale BSF: The LEP, comprising Rochdale Borough Council, Building Schools for the Future Investments LLP (BSFI) and Carillion, expects to deliver 13 new or refurbished schools in three phases over a 4-year period under the Rochdale Building Schools for the Future programme, worth approximately £192m.
Carillion expects to carryout the building and refurbishment work for which the capital cost is approximately £180m, with work due to start in January 2010. Four of the 13 schools are expected to be privately financed by a combination of borrowing and equity. One of these, Hollingworth School, is to be delivered in the first phase, in which Carillion expects to invest some £2.4m of equity. Carillion also expects to invest equity in the other three privately financed schools. In addition, Carillion expects to provide facilities management services for all four privately financed schools, generating approximately £12m of revenue over a 25-year concession period.
The total value of the BSF contracts Carillion has won to date to £1.2bn and it is shortlisted for further BSF contracts worth approximately £2.25bn.