Featured Sector: Education

In contrast to other publicly funded sectors, the outlook for the education sector is positive, primarily due to the Priority Schools Building Programme (PSBP). Largely using the Government’s new private finance regime, PF2, the PSBP is now expected to deliver the re-construction or repair of all 261 schools in the programme by the end of 2017.

Work on the first 42 schools is being directly financed by an Education Funding Agency grant, rather than private finance, and the first project, Whitmore park primary school, has already begun on site.

The EFA plans to secure £700m of private finance for the remaining schemes through a single debt instrument or ‘aggregator’ as it is being called. The aim is to create a unified investment portfolio thereby spreading the risk of individual projects across a single institutionally rated instrument. For more information on the tendering process and timetable please see the Education prospects section.

The EFA has also announced a £5bn regional framework for remodeling and refurbishment of schools. This framework involves  5 lots worth £750m to £1.5bn, these are made up of projects worth typically £3 to £5m. The tender process will be launched on 25th November.

Universities are competing to attract domestic and overseas students and accordingly are investing in facilities to enhance the student experience.