The negotiation process for the Public Private Partnership (PPP) project for South Ayrshire Council Schools Estate is progressing towards the finalisation of financial arrangements for the project.

At a special meeting of the Council’s Policy and Resources Committee members received an update from the Head of the PPP project. The ambitious project will involve the construction of new primary schools at Barassie, Alloway and Monkton, new secondary schools at Belmont and Prestwick and an annexe to Kyle Academy.

The Committee gave approval for key financial milestones prior to Financial Close these are:

• Financial Model and the Affordability Threshold.
• Value for Money and the Public sector Comparator.
• Halifax Bank of Scotland and Full Credit Approval.
• Audit Scotland and the Proposed Accounting Treatment.
• Scottish Government Approvals
• SWAP Rates – dry run with Ernst and Young and Price
• Waterhouse Coopers.
• Arrangements for signing the necessary contractual documentation.

Councillor Gibson T. Macdonald, Leader of the Council and Convener of the Committee said: “It is an exciting time, seeing the PPP project coming to this stage, and knowing that the Council’s school estate will be enhanced by new school buildings. The Council is facing tough financial times, however, putting the finances in place for the PPP project is a long term investment that will bring benefits to future generations.”

Following the meeting, a further "milestone" was reached in the preparations for the project when key representatives from the PPP consortium visited South Ayrshire Council’s County Buildings headquarters, to meet with Chief Executive Tom Cairns and to take part in a signing of documents signifying the “Commercial Closure” of the project.

(From the left) The Leader of South Ayrshire Council, Councillor Gibson T. Macdonald looks on as Chief Executive Tom Cairns signs in the presence of David Hazelton, Commercial Director, Carillion Construction Ltd; Ken Gill, Director of Cyril Sweett Holdings Ltd, and Dick Burge, Director of Infrastructure and Finance, Bank of Scotland Corporate.

December 2006