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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.
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Three schools in the first wave will be privately financed by a combination of borrowing and equity. Barclays and Nationwide will each provide £26.5 million of the £53 million of debt finance required.
The LEP shareholders will invest £5.8 million of equity in the project, of which Carillion's share will be £4.6 million. Carillion will also provide facilities management services for the three privately financed schools, worth approximately £25 million 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.
Commenting, Carillion Chief Executive, John McDonough, said: "This latest BSF contract further consolidates Carillion’s position as a market leader in delivering the Building Schools for the Future programme and brings the total value of the BSF contracts we have won to date to £1.2 billion. In addition, we are shortlisted for further BSF contracts worth approximately £2.25 billion.
"The major investment being made in Durham will provide the County with over 40 outstanding new schools. We look forward to working closely with Durham County Council, its head teachers and their staff, to provide the facilities they need to deliver a first class learning experience for students."
(CD/BMcC)
