Financial close has been finally been reached for the £31 million Holy Cross College in Strabane-County Tyrone, in Northern Ireland after the project overcame numerous challenges

The project is the first PPP deal in Northern Ireland and is to merge three schools- two secondary and one grammar in a DBFO contract over a 25 year concession period.

The three schools are owned by the Catholic group of trustees with the Council for Catholic Maintained Schools (CCMS) managing the project.

A consortium of Interserve and equity partner O'Hare & McGovern closed financing for the school and is to provide a wide range of academic and vocational courses for around 1,830 children from the Strabane area.

Background

The project was announced in March 2001 with an OJEU advertised in 2002. After an ITN was issued in 2003 the project was delayed due to a request from the trustees to discuss the possibility of using a disused Templemore site for the colleges.

The scheme was then re-advertised in the OJEU in 2004 with preferred bidder selected in September 2004.

It was then delayed again due to deliberation on the transfer of catering services to the private sector.

The schools then amalgamated and Holy Cross College opened at the existing premises but again, it was delayed due to deliberation on the transfer of cleaning services to the private sector.

Both cleaning and catering services were excluded from the scope of the project and the project was then approved and the contract signed in September 2006

Before financial close was announced, the school was located at three sites:

• St Colman's High School-a secondary school for boys aged 11-18
• Our Lady of Mercy High School-a secondary school for girls aged 11-16
• The Convent Grammar School-a grammar school for girls aged 11-18

Financing

The Bank of Ireland provided debt funding for the Holy Cross College PPP Project with the facilities management of the school valued at £16 million over the 25 year concession period.

The total debt is amounted to £28.3 million and Interserve whose legal advisers were McCann FitzGerald and financial advisers were Deloitte invested £3.1 million jointly with their 50:50 equity partner O'Hare & McGovern.

Conclusion

The three schools have been described as 'flagship schools' and is one of first non-selective academic schools in Northern Ireland.

The Holy Cross College is by no means the final PPP project in Northern Ireland with Hochtief closing a schools contract in September for £40 million in Bangor.

Interserve is already providing services at three educational PPP projects in the region which include St Genevieve's High School in Belfast and two colleges of further education in Omagh and Dungannon.

The project at a glance