Carillion-led LEP confirms £370m contract

A Local Education Partnership (LEP) led by construction service provider Carillion has achieved financial close on the £370m Wolverhampton Building Schools for the Future (BSF) programme, part of the government’s £65bn BSF programme.

The Wolverhampton LEP, comprising Wolverhampton City Council, Building Schools for the Future Investments LLP and Carillion, will deliver 26 schools in five phases over the next four years, with the first phase comprising two secondary schools and two special educational needs schools with a combined capital cost of approximately £72m.

Two schools in the first phase will be privately financed by a combination of borrowing and equity, with the LEP shareholders contributing approximately £6.6m of equity, of which Carillion will provide £5.2m.

Carillion will also provide facilities management services for the two privately financed schools, which is expected to generate approximately £25m of revenue for Carillion over the 25-year concession contract period.