The Plenary Schools consortium today announced that it has achieved financial close with the Queensland Government for the delivery of the Queensland Schools PPP Project.

Yesterday, the Queensland Government had announced that the consortium had been selected as preferred bidder for the project.

Plenary Group Director, Ray Wilson, said the Queensland Schools PPP will see Plenary and Watpac deliver another exciting project for Queensland and will further strengthen Plenary's position in the state's burgeoning infrastructure market.

The Queensland Schools PPP will see the delivery of 10 new schools across South East Queensland, over five years, in Pimpama, Burpengary, Pallara, Ripley Valley, Springfield, Griffin, Bellbird Park, Caboolture and Redbank Plains.The Plenary Schools consortium comprises:

• Plenary Group: Project sponsor, financial arranger and equity investor
• Watpac: Building contractor
• Delta FM Australia (Compass Group): Facilities management

Under the Public Private Partnership agreement the consortium will design, construct, commission, finance, maintain and provide facilities management services for the package of schools over a concession period of thirty years.

Mr Wilson said that considerable work undertaken during the bid phase enabled the consortium to achieve financial close in record time:

"For Plenary Schools and the State to have reached financial close so quickly is the first of what I am sure will be many outstanding collaborative achievements in the delivery of this important project for the parents and children of South East Queensland."

The banking group brought together to finance the project consists of National Australia Bank Limited and Investec. Plenary Group has invested 100 per cent of the Project's Equity requirement.Watpac's component of the works program is valued at A$350 million and involves the design and construction of the new schools.Since 2006 Plenary and Watpac have together delivered in excess of A$550 million in new infrastructure across Australia via public private partnerships. This includes the design, delivery and operation of single living apartments at eight Defence Force bases throughout the country, including three in Queensland.Plenary is also the financial arranger and equity investor of the Gold Coast Rapid Transit light rail project.Watpac Chief Executive Officer, Martin Monro, said Watpac's component of the works program totals A$350 million. Mr Monro said:

"This is a significant multi-site construction project and will draw upon Watpac's considerable experience in delivering master planned education facilities within metropolitan and regional locations."

"We are delighted to be working with Plenary again."Mr Monro said the five year construction program is expected to create more than 3,000 jobs throughout the life of the project, with Watpac deploying specialist teams to deliver the works concurrently across multiple sites. Mr Monro said:

"The schools will be built over a five year period, with the first package of schools scheduled to open at the start of the 2015 academic year."

The Plenary Schools consortium will assemble its team for the commencement of Stage One construction in January 2014. The process will start with Burpengary Secondary College and East Coomera Primary School. By the end of 2014 there will be four schools under construction.