Financial close in Wolverhampton

A Carillion-led Local Education Partnership (LEP) has achieved financial close on the £370 million Wolverhampton Building Schools for the Future (BSF) programme.

Carillion has now been chosen to deliver BSF and Academy programmes worth nearly £2.2 billion.

The Wolverhampton LEP, comprising Wolverhampton City Council, Building Schools for the Future Investments LLP and Carillion, will deliver 26 schools in five phases over the next four years.

The first phase will comprise two secondary schools and two Special Educational Needs 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 £6.6 million of equity, of which Carillion will provide some £5.2 million. Carillion will also provide facilities management services for the two privately financed schools and these services are expected to generate approximately £25 million of revenue for Carillion over the 25-year concession contract period.

The remaining 22 schools in the Wolverhampton BSF programme will be delivered in four further phases. Some of these schools will also be privately financed and Carillion expects to make further equity investments in subsequent phases of the programme.

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 and Academy programmes, for which we have now been selected to deliver projects worth nearly £2.2 billion.

“The major investment being made in Wolverhampton will provide the City with 26 outstanding new schools. We look forward to working with Wolverhampton City Council and its head teachers and their staff to provide the facilities they need to deliver a first-class learning experience for students.”