Preferred bidder for East Down and Lisburn PPP project announced

Employment and Learning Minister, Angela Smith, today announced the preferred bidder” for the East Down and Lisburn Institutes’ Public Private Partnership (PPP) projects.

The East Down and Lisburn Educational Partnership (EDLEP) consortium will now enter into negotiations to agree a contract to design, build, finance and operate the teaching accommodation of the two colleges for a period of 25 years.

The project, with a £40million capital value, will replace existing accommodation which fails to meet modern requirements and has been in urgent need of repair for some time. The new accommodation will be provided at the East Down Institute (with campuses at Downpatrick, Newcastle and Ballynahinch) and Lisburn.

Welcoming the progress to announcement of preferred bidder, the Minister said: Further education has a pivotal role in preparing people for the world of work and in revitalising the social, economic and learning aspects of the communities they serve.  Clear evidence of the importance placed on the sector by Government is reflected in the major investment programme currently underway in many colleges throughout Northern Ireland.

The new state of the art infrastructure that will be provided for the East Down and Lisburn Institutes is something that the communities and the Colleges will be proud of.  It will also assist the Colleges in delivering training relevant to the demands of the modern economy as outlined in the recent Further Education Review.”

Subject to the successful negotiation of the contract, which will include planning permission being obtained for the EDLEP design, it is anticipated that construction could begin later this year with an expected completion date of late 2008 or early 2009.

NOTES TO EDITORS:

1. The private sector consortium comprises Billfinger Berger, the main sponsor and majority equity shareholder with contractors O’Hare and McGovern (East Down) and Farrans Ltd (Lisburn), Architects, Kennedy Fitzgerald Associates (East Down) and Knox and Clayton (Lisburn), facilities management company Grahams FM Ltd and funder, Bank of Ireland.

2. PPP differs from traditional procurement in that, instead of providing a building to a specified design, the contractors are bidding for the provision of facilities to agreed standards for a period of 25 to 40 years.  It is considered that PPP offers a number of advantages including:

  • Providing maximum opportunity to benefit from private sector innovation and skills in the delivery of cost-effective management, operation and development of the further education estate.
  • Spreading the capital costs over a longer term, typically 25 to 40 years, offering the prospect to Government of funding more major projects in the short-term.
  • Enabling larger schemes to be progressed, rather than a phased approach.
  • Guaranteeing a pre-determined level of maintenance and facilities management services for the duration of the contract.
  • Substantial elements of risk in relation to the provision of accommodation and services are carried by the private sector that is better placed to manage them.
  • Allowing the management of colleges to devote more time to the core business of providing education and training.

3. Media enquiries to the Department for Employment and Learning Press Office on 028 9025 7872.