European Investment Bank to finance BSF schemes
18 December 2008
The European Investment Bank (EIB) has indicated that it is prepared to consider funding half of the debt requirement of a number of Building Schools for the Future (BSF) projects, up to a value of £300 million.
The EIB will fund 50% of a small number of projects, helping local authorities and Partnerships for Schools, the delivery organisation for the national programme, to reach financial close on selected BSF schemes which include a Private Finance Initiative (PFI) element.
Discussions are still under way about the exact BSF projects to benefit from this funding in the first quarter of 2009.
Tim Byles, Chief Executive of Partnerships for Schools, said: “With the 26th BSF deal reaching financial close earlier this month, BSF continues to deliver. These are, however, very challenging times. Lending conditions in the PFI market in particular have tightened, with most banks not lending new money as we approach the Christmas period and their financial end of the year. Decisions on lending senior debt into PFI schemes are now likely to be taken in the first quarter of 2009.
“We are working extremely hard to manage theses challenges and minimise any delays. These proactive measures, including mechanisms such as Early Works Agreements and split financial closes, are working to help ensure that BSF continues to be delivered on time and on budget.
“With 42 BSF schools now open, 2008 has been a year of real delivery for Partnerships for Schools, and we look forward to the announcement in early 2009 that more local authorities will be joining the programme sooner than originally planned to start rebuilding schools in their area.”
Notes to Editors:
- There are now 42 BSF schools open across the coutnry – Park Campus in Lambeth the latest to open in November
A total of 26 deals have closed, with 15 Local Education Partnerships (LEPs) established. There are currently 80 local authorities in the BSF programme. All remaining authorities in England have now submitted revised a Expression of Interest. - Details are available on the EIB website at: http://www.eib.org/projects/pipeline/2008/20080639.htm
- Building Schools for the Future (BSF) is the largest single schools capital investment programme for over 50 years. The aim is to rebuild or renew England’s state secondary schools estate during the lifetime of the programme.
- Partnerships for Schools (PfS) is the delivery organisation for Building Schools for the Future. PfS was established in April 2004 as a Non-Departmental Public Body (NDPB), and is operated and funded under a joint venture between DCSF (formerly DfES) and Partnerships UK. PfS is a 100-strong organisation, with specialist expertise including educationalists, designers, ICT specialists, commercial managers and project management.
