UK - Balfour Beatty preferred bidder for Birmingham schools

Third schools PFI win this year

Balfour Beatty’s education PFI concession company, Transform Schools, has been appointed preferred bidder for the £56m Birmingham Schools PFI contract by Birmingham City Council.

The project, which is anticipated to reach financial close in May 2005, will provide a total of 12 new and refurbished schools, including two secondary schools, nine primary schools and one early years centre within Birmingham. Balfour Beatty will invest £3.5m of equity in the project.

Construction work, which will have a phased completion, with the first schools handed over in 2007 and completion of all the schools in 2008, will be carried out by a joint venture of Balfour Beatty subsidiaries, Balfour Beatty Construction and Balfour Kilpatrick. Facilities management to a value in excess of £40m over a 30 year period will be undertaken by Haden Building Management, another Balfour Beatty subsidiary.

This is Balfour Beatty’s fifth major schools PFI project through Transform Schools. Its projects at Stoke and Rotherham are in their fourth and second year of operation respectively, while financial close on the project for North Lanarkshire Council is expected this year and the Bassetlaw Grouped Schools PFI contract for Nottinghamshire County Council in January 2005.

Last week, Balfour Beatty announced it had been appointed one of two framework contractors by Manchester City Council in a three-five year partnering contract aimed at delivering a substantial part of the Council’s £160m ‘Building Schools for the Future’ programme.