Morgan Sindall Investments and Equitix joint venture (JV) has closed financing for the third batch of PF2 schools in the North West of England.

The total project investment is estimated at £127 million (US$188 million). The investment is being supported by a £50.7 million long-term loan from the European Investment Bank (EIB). The Amber Consortium composed by International Public Partnerships Limited (INPP) and Aviva Investors will also finance the project.

Law firm Eversheds has advised a consortium of Morgan Sindall Investments and Equitix to reach financial close.

The eleven schools to benefit from new investment include

• Five secondary schools: the South Shore Academy in Blackpool, the Deanery Church of England High School in Wigan, Ridgeway High School in Prenton, Blacon High School in Chester and Neston High School.

• Six primary schools: Hawes Side Primary School in Blackpool, Dee Point Primary School and J.H. Godwin Primary School in Blacon, Bedford Drive Primary School in Birkenhead, Bridge Hall Primary School in Stockport and Plymouth Grove Primary School in Chorlton on Medlock, Manchester.

The project will be developed on a design, build, finance and maintain (DBFM) basis. The contract will include an estimated 24 month construction phase and a 25 year operational term from the service commencement date of the final school to be completed.

The schools represent the third batch of the broader Priority School Building Programme (PSBP). The programme is a centrally managed government programme set up to address the needs of the schools most in need of urgent repair. Through the programme, 261 schools will be rebuilt or have their condition needs met by the Education Funding Agency (EFA).

In mid July 2014 we reported that the EFA announced that Amber Infrastructure & International Public Partnerships Limited (INPP) consortium was chosen as the selected bidder to finance the five batches of schools being delivered through the PSBP.

The five batches are the following:

• Batch 1 - Priority School Building Programme (Hertfordshire, Luton and Reading)
• Batch 2 - Priority School Building Programme (North East)
• Batch 3 - Priority School Building Programme (North West)
• Batch 4 - Priority School Building Programme (Yorkshire)
• Batch 5 - Priority School Building Programme (Midlands)