INPP to commit £78m to PF2 schools scheme

The London-listed investment firm is backing 46 UK schools being delivered in five batches by the Priority Schools Building Programme.

International Public Partnerships Limited (INPP), the London-listed infrastructure investment firm, says it expects to provide £78 million (€99 million; $124 million) in funding to Priority Schools Building Programme (PSBP) projects being rolled out over the next 12 months.

The UK’s Education Funding Agency and the Amber consortium – of which INPP is a part – recently reached commercial close on a deal which will see 46 UK schools delivered in five batches with a total value of £700 million. INPP said in a statement this was an “important step” towards achieving financial close on the underlying projects.

As well as INPP, the Amber consortium also includes Aviva Investors and the European Investment Bank, which is providing senior debt.

The PSBP is a centrally managed government programme set up to address the needs of schools in most need of urgent repair. Overall, the programme comprises 261 schools that will be rebuilt or improved by 2017 and is effectively a scaled-down version of the previous Labour administration’s £50 billion Building Schools for the Future (BSF) scheme.

The part of the PSBP programme being delivered by the private sector is being done through the PF2 framework, the successor to the Private Finance Initiative (PFI). PF2 was introduced by the coalition government in an attempt to reduce costs and introduce greater transparency compared with PFI.

INPP recently announced financial close for its £171 million investment in the Lincs offshore transmission (OFTO) project; as well as saying it was looking to raise £70 million by way of a tap issue.