The first stage of the Durham Building Schools for the Future (BSF) reached financial close on 14 August 2009. The Local Education Partnership (LEP) for the project comprised of Durham County Council, Building Schools for the Future Investments (BSFI) and Carillion Private Finance. The entire BSF project will involve approximately £500m in capital cost and is expected to deliver over 40 schools in four waves over the next ten-years.
Three schools in the first wave, Sedgefield Community College, Shotton Hall School and Shotton Primary, will be privately financed by bank debt and equity. Barclays and Nationwide will each provide half of the £50m of debt finance. As well as constructing the new schools, Carillion will also be providing facilities management services for the three schools, worth approximately £40m in nominal value over the 25-year concession period.
Operis provided financial advice to Carillion, which included financial modelling.
