Success in Carillion’s own backyard
MULTINATIONAL giant Carillion has taken a major step forward in its campaign to win a contract in its own backyard – the £370 million Wolverhampton Building Schools for the Future programme.
A Carillion-led Local Education Partnership (LEP) has been appointed as the preferred bidder for the £370 million Wolverhampton Building Schools for the Future (BSF) programme, part of the UK Government’s £65 billion BSF programme.
This latest success means that Carillion has now secured, or been appointed as the preferred bidder for, BSF contracts worth around £1.7 billion.
Wolverhampton-based Carillion is one of the UK’s leading support services company with a portfolio of Public Private Partnership projects and extensive construction interests. The Group has annual revenue of over £5 billion, employs around 50,000 people and operates across the UK, in the Middle East, Canada and the Caribbean.
The Wolverhampton LEP, comprising Wolverhampton City Council, Building Schools for the Future Investments LLP (BSFI) and Carillion, will deliver 26 schools in four phases over the next four years. The first phase of four schools comprises two secondary schools and two Special Educational Needs (SEN) schools with a combined capital cost of approximately £72 million.
Two schools in the first phase will be privately financed by a combination of borrowing and equity. The LEP shareholders will contribute approximately £6.4 million of equity, of which Carillion will provide some £5.1 million. Carillion will also provide facilities management services for the two privately financed schools and these services are expected to generate approximately £24 million of revenue for Carillion over the 25-year concession contract period.
Carillion chief executive John McDonough said: “This latest success further consolidates Carillion’s position as one of the UK’s leading suppliers to the Building Schools for the Future programme and brings the total value of the BSF projects that Carillion has secured or for which we are the preferred bidder to some £1.7 billion.”
