Skanska consortium preferred bidder for £70m PPP Scottish schools deal

A consortium comprising Skanska and the PFI infrastructure company (PFI Co) has been selected as preferred bidder on a 30-year Public Private Partnership project in Scotland.

The £70m contract is to design, construct, finance and operate eight new primary schools for Midlothian Council.

The consortium will provide new education facilities for the council, covering a total area of 20,000m2.

The first two schools will be completed for the start of the new academic year in August 2006 with all schools finished by February 2007. Financial close is expected in October this year, when work on site will begin.

Skanska and PFI Co will provide equity investment for the schools on a 50:50 basis. Following construction completion, Skanska will provide services and maintenance of the new schools for a period of 30 years.

PFI Co is the first listed investment vehicle dedicated to PFI equity.  The company was formed in July 2004 when it raised £47m on AIM.  It has investments in 15 PFI projects including seven education projects.