BAM/PGGM signs schools PPP contract with Department of Education and Skills in Ireland
Bunnik, The Netherlands / Kill, Co. Kildare, Ireland, 12 November 2012 - BAM PPP PGGM Infrastructure Cooperatie, BAM’s investment joint venture with Dutch pension fund administrator PGGM, together with BAM Contractors Ltd has signed a schools public private partnership (PPP) contract with the National Development Finance Agency, on behalf of the Department of Education and Skills, for the design, build, finance and maintenance of the Schools Bundle 3 contract.
The project consists of eight schools, seven post-primary schools, and one primary school. The schools are located in Donegal (Letterkenny), Galway (Doughiska), Leitrim (Ballinamore), Limerick (Doon), Waterford (Tramore), Westmeath (Athlone) and Wexford (Gorey). The projects will employ over 1,100 people, including engineers, contracts managers and quantity surveyors.
Minister Quinn said: ‘This is very good news for the communities in counties stretching from Donegal to Waterford who have been waiting for their school building projects to be given the green light. The creation of more than 1,000 jobs is also a welcome boost for the construction industry, but ultimately the main beneficiaries of this project will be the thousands of students who will have state of the art school facilities in which to further their education, creativity and potential for many years to come.’
The capital cost of the new schools is approximately €100 million. Project financing includes circa €121.5 million of bank debt which will be provided by senior lenders Bank of Ireland and the European Investment Bank, with a maximum maturity of 23 years, and €15 million of BAM PPP PGGM Infrastructure Cooperatie UA investment.
The 18 months construction of the schools will commence on 12 November 2012 and will be undertaken by BAM Building Ltd. BAM FM Ireland Ltd will maintain the schools throughout the 25 year contract.
BAM advisers on the project were Quayle Munro and Philip Lee.