Due to the no availability of long term bank debt for the financing of infrastructure and Public Private Partnership (PPP)/Private Finance Initiative (PFI) projects, the UK Education Funding Agency (EFA) has developed a model based upon the establishment of a funding vehicle known as the 'Aggregator' for the financing of the Priority School Building Programme (PSBP).

In early October, EFA shortlisted 6 firms to progress to the second stage of the process:

• Allianz and Uberior (Abacus)
• Amber and International Public Partnerships Limited
• Barclays Infrastructure Fund, 3i and BlackRock
• InfraRed and RBC
• NIBC
• Rock Infrastructure and RBS (Lyceum)

These 6 bidders have now been invited to submit outline proposals to the EFA. This second stage will conclude in November, at which time 3 will be selected to proceed to the next stage, with the ultimate aim of concluding the process in mid-2014.

PSBP is a centrally procured programme to address the renewal of some of England's schools estate in the worst condition. Through this programme 261 schools will be rebuilt, or have their condition needs met in some other way. Out of the 261 schools in the PSBP, 46 will be delivered through Private Finance in 5 separate projects or 'batches'.

Shortlists have already been announced for the first and second batches of school projects: the Hertfordshire, Luton and Reading batch and the North East batch. UK Government has confirmed details of the bidders' day for the third private finance batch.