Title

A £300m investment by the European Investment Bank has eased pressure on the Government's school-building programme. The bank has committed, in principle, to fund half of the PFI element to part of the Building Schools for the Future (BSF) programme, representing a significant boost to the scheme. The project is being overseen by Partnerships for Schools, which had been under pressure as a result of the contraction in the credit markets. Discussions are still under way about the exact BSF projects to benefit from this funding in the first quarter of 2009. BSF aims to rebuild or renew almost every secondary school in England, funding by government and private sector investment. There are now 42 BSF schools open across the country. It followed the good news with confirmation that 18 firms have been appointed to provide technical advisory services, including Mouchel and Capita. Chief executive of Partnerships for Schools, Tim Byles, said: ‘These are challenging times. Lending conditions in the PFI market, in particular, have tightened, with most banks not lending new money. We are working hard to manage these challenges and minimise delays.' With ministers looking to increase public infrastructure projects to boost the economy, the guarantee will help BST meet the demand from Whitehall. A report by the Commons' children, schools and families committee had voiced concern. MPs wrote: ‘The concern for the department is that these serious economic problems could undermine investment in education and related services, and might prevent the Government from achieving its objectives.' Mr Byles remained confident: ‘We look forward to more local authorities joining the programme sooner than originally planned.'

Title

BUSINESS

Europeans help BSF with £300m

SUBSCRIBE TO CONTINUE READING