School projects boost North building industry

There was good news for the construction industry in Derry today with news work on building two new schools will begin immediately.

Up to 300 jobs will be provided by the £38m (€43.4m) project to build new premises for St Mary’s College and St Cecelia’s College.

Newry construction firm O’Hare & McGovern along with their facilities management partner Interserve said they had reached financial close on the Public Private Partnership (PPP) project.

The deal will see work start on two new school buildings for over 1,600 girls aged 11-18 right in the heart of Derry.

St Cecelia’s, currently located on the former Templemore Secondary School site on the Northland Road will be provided with premises on its original site in the Creggan, while St Mary’s will relocated to new buildings when the the Templemore site is vacated.

O’Hare & McGovern will provide equity and construction services while Interserve will provide equity and facility management services.

The companies are equal joint partners in Belfast Educational Services which is responsible for the design, build, finance and operation of both schools for 25 years.

Patrick Duffy, finance director of the construction firm said: “We are delighted to have reached financial close on this project in a climate where raising long term capital funding can be challenging.

“Through our reputation and close partnership with Interserve we were able to gain financial support to close this particular transaction thus enabling construction to commence immediately.”

Managing director Eamon O’Hare said finalisation of the deal came the week after they celebrated the official opening of another PPP Project, the 1,800 pupil Holy Cross College in Strabane.

He added: “We are also looking forward to a promising start to 2009 as we hope to reach financial close on the Down & Connor PPP incorporating four schools early in the new year.”

O’Hare & McGovern PPP contracts cover 14 sites across the North. Four are already in operation, six have reached the construction stage and four are at “preferred bidder” status.