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EFA shortlists three bidders for first of five Priority Schools bundles


Three firms have been shortlisted to produce the first batch of privately-financed schools under the Priority Schools Building Programme (PSBP), according to press reports.

Building Magazine reported that the Education Funding Agency (EFA) has shortlisted contractors Morgan Sindall, Wates and Interserve/Kajima for the £122 million contract, which covers seven schools in Hertfordshire, Luton and Reading. It is not expected to appoint a preferred bidder until next year, according to Building.

The EFA is due to procure 46 schools in five batches over the next 12 months, with a total funding requirement of approximately £700m. The schools will be funded through a mix of private equity and debt, plus a government equity contribution. The second batch, consisting of 12 schools in the North East of England, was put out to tender at the start of August.

The PSBP is intended to address the needs of the schools in the worst condition in the country, with funding resources allocated from a set budget according to need. In total, 261 schools have been identified for a share of funding under the programme. Of these, 46 will be privately financed through a form of the new PF2 contracting mechanism while the remainder will be delivered using capital funding.

The EFA is also tendering for a fund manager to manage the 'aggregator' which will coordinate funding for the 46 schools. This fund manager will be able to access both bank debt and the capital markets in order to pull together funding for all five batches of schools rather than having each secure its own funding.

According to the contract notice issued by the EFA, contractors will be required to design, build, finance and maintain the new schools in that particular batch. Maintenance services are "likely to include hard facilities management services and may also include some soft facilities services". The final contract would include a 24 month construction phase and a 25-year operational term beginning on the date that the final school in the batch opens.

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