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The Education Funding Agency (EFA) has announced that 46 schools will be rebuilt using private finance under the next steps of the Priority School Building Programme (PSBP) that will boost the trades and create jobs.
46 schools in 5 batches will be rebuilt under the government’s new approach to public private partnerships, known as PF2. These schools have a total funding requirement of approximately £700 million.
The funding is set to be raised using an innovative new ‘aggregator’ model. The ‘aggregator’ will be able to access both the bank debt and capital markets in order to secure the best deals for the taxpayer.
The Hertfordshire, Luton and Reading batch will be launched at a bidder’s day due to be held by the EFA on 28 May 2013. A notice inviting bids from firms interested in constructing and maintaining the schools will be published in the Official Journal of the European Union in June.
The other batches, to be released over the next 12 months, will see the creation of more jobs in the building engineering industry as well as benefit from the future investment fund.
The announcement underlines the government’s commitment to using public private partnerships to deliver investment in new public infrastructure and assets.
Ministers are also announcing the allocation of a further £300 million of capital funding in the current spending review period to enable an early start for 27 further schools in the programme. These schools will be procured in 4 batches.
The investment is part of the government’s commitment to give children the best possible start in life and to make sure schools are a place where children can fulfil their aspirations.
The remaining schools in the programme are intended to be delivered using capital funding, subject to the next spending review settlement. The timetable for the remaining schools in the programme will be announced after the settlement is made in June.
Peter Lauener, Chief Executive of the EFA, said: “I am delighted we can confirm the schools to be rebuilt through private finance. The government’s new approach to public private partnerships provides a great opportunity for industry to step up to the mark and I am looking forward to seeing innovative and cost-effective proposals.”
“These 5 privately-financed batches, plus the additional 4 capital-funded batches also announced today, will help us overhaul the schools with the greatest need, ensuring young people can learn in buildings that are up to scratch.”