PSBP North East Project wins Gold Award for Best Education Project

4 April 2019 Sustainability
InfraRed Capital Partners is pleased to announce that PSBP North East Batch Project (the “Project”), had won the Best Educational Project Award during the 18th annual Partnerships Bulletin Awards event.

The Awards are organised by Partnerships Bulletin and are focused on PPP industry and strive to recognize and reward outstanding achievements in public-private partnerships across Europe.

The judges recognised the Project to be an important landmark in the development of the PPP model. The scheme is the UK Treasury’s first direct equity investment into a PPP and was signed directly by the Department for Education.

The Project is part of the wider Priority School Building Programme (PSBP), developed to address the needs of the schools most in need of urgent repair. Through the programme, 260 schools are undergoing reconstruction or improvement of their conditions supported by Education Funding Agency.

PSBP NE projects is one of the five batches of 46 schools, divided by geographic areas, that will be delivered through Private Finance model 2 (PF2), the government’s new approach to private finance. The project was the first PF2 scheme to close in any sector, establishing the market position and proving the viability of the PF2 model. Furthermore, it was the first project to reach financial close using an aggregator-funded model.

The Project, which has a capital value of £103m, reached Financial Close on 10 March 2015 and, once constructed, will comprise six new-build secondary schools and six new-build primary schools.

The construction works are undertaken by a subsidiary of Galliford Try Plc over a period of 18 months from financial close, and will comprise the demolition of redundant buildings and the construction of the new schools.

Hard FM services are provided by a subsidiary of Galliford Try Plc over a 25-year period under a concession contract, as well as lifecycle replacement for the buildings’ fabric and services and certain furniture, fittings and equipment.

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