The city of Espoo has closed the first Finnish public-private-partnership (PPP) financing in support of public education infrastructure. Kumppanuuskoulut Oy, the special purpose vehicle formed by YIT and Meridiam Investments II, that was founded for this purpose, will support the construction of eight schools and day-care centers, which will serve 4000 children and young people.
The European Investment Bank has contributed with a 21.5-year tenor EUR 60 million (US$ 67.84 million) loan, made available under the European Fund for Strategic Investments (EFSI), part of the Investment Plan for Europe. In addition, the Nordic Investment Bank (NIB) has provided an equally long-term loan of up to EUR 75 million (US$ 84.80 million) and OP Corporate Bank has provided up to EUR 35 million (US$ 39.57 million) to the project.
The agreement between Kumppanuuskoulut, the service provider, and the City of Espoo is the first municipal project to be carried out using the Public-Private Partnership (PPP) model in Finland. The new facilities are set to open their doors in the period between 2022 and 2024. Kumppanuuskoulut is responsible for the project's financing, planning, construction, and maintenance until the year 2042.
The total value of the projects, implemented with the PPP model, is approximately EUR 300 million for the whole service period, with YIT’s share being approximately EUR 235 million. YIT owns 20% of Kumppanuuskoulut Oy, and Meridiam Investments II owns the remaining 80%.
The service agreement covers the construction of and 20 years of maintenance for schools in Nauriskaski, Kuitinmäki, Kilo and Pohjois-Tapiola, school and youth facilities in Perkkaa as well as daycare centres in Perkkaa, Nöykkiönniitty and Kilo. The projects will include facilities for nearly 3,900 children, and the constructed gross area is approximately 45,000 m2 in total.
The project will deliver on Espoo's commitment to school network optimization and modernization and includes buildings to be constructed in-focus areas with a growing population. Apart from being specifically designed to facilitate the use of modern pedagogical approaches and the use of ICT, the schools will also adhere to high energy efficiency standards, thus bringing additional value to the project in respect of EU objectives.
