Two vie for Scots school PFI

Just two bidders are being interviewed for the latest in a series of private finance schools projects in Scotland.

Insiders say that only Robertson and the Anglian Water Group (which owns Morrison) will pick up the tender documents later this month for Aberdeenshire Council's £45m deal.

Clients with PFI school deals north of the border are finding it hard to attract many firms, although it is understood that at least four outfits are being interviewed for a £38m scheme for Fife Council.

One contractor said: "There are so many PFI education projects coming up in Scotland this year that contractors can pick and choose, bearing in mind that some schemes, depending on their size, can cost nearly £1m in bid costs."

Another contractor said: "There are a number of firms in Scotland that could tackle the construction element of school schemes, but there aren't that many who could tackle the whole PFI package including the negotiations, funding and facilities management."

A source close to the project claimed: "Having two on the bid list is okay if the two are serious, with expertise and experience, and providing the client's priority is quality rather than the cheapest price.

"But it is a sign of the times considering that when another Aberdeenshire schools PFI scheme emerged about three years ago, nine groups sent in prequal bids," he added.

The council hopes to name a preferred bidder for its latest scheme, known as Project 2, this summer. Financial close is expected in January 2004, with delivery due in 2005.

The job is to build six primary schools and revamp a secondary school, with the concession running for either 25 or 30 years.

The Fife deal, which centres on nine primary schools, is understood to have attracted Miller, AWG, Gleeson and Jarvis.

Among the PFI school deals still to come in Scotland are projects for:

n South Lanarkshire Council (£150m).

n Highland Council (£100m).

n Inverclyde Council (£80m).

n Argyll and Bute Council (£80m).

n Dundee City Council (£80m).

n South Ayrshire Council (£60m).

n East Ayrshire Council (£60m). n East Renfrewshire Council (£53m).

n West Lothian Council (£50m).

In addition, Dumfries and Galloway Council (£95m), North Lanarkshire Council (£150m), and Renfrewshire Council (£100m) have all selected a list of shortlisted consortia for their PFI projects.