Applying PPP lessons

The rapid growth in demand for technical education in Singapore creates a pressing need to develop high-quality, sustainable educational facilities. Using the PPP model developed in the UK, the Institute of Technical Education (ITE) in Singapore chose Balfour Beatty's Group-wide experience in designing and delivering privately-financed educational facilities to ensure the best outcome.

Innovation is the hallmark of the new College West campus currently being constructed for the Institute of Technical Education, the principal provider of technical education in Singapore.

The building, which features a stunning walkway and a transparent design, is being built and managed through the first Public Private Partnership (PPP) of its kind in South-East Asia.

This S$270m (Singapore dollars) contract, which has a duration of 27 years, is one of the first on the continent to resemble PPP projects familiar in the UK. Through our joint venture businesses Gammon Capital and Gammon Construction, all of the Group’s PPP experience has been utilised to create a project-winning proposition. The ground-breaking nature of the project has been recognised by its award as Project Finance International’s Asia Pacific PPP Deal of the Year 2008.

Flexible learning space
The new college will include a campus housing 7,200 full-time and 8,100 part-time students and around 630 staff, with completion scheduled for 2010. It incorporates flexible and adaptable learning spaces which support ITE’s dynamic and changing curriculum requirements.

The college focuses on service excellence in the hospitality and retail industries and offers a range of technical qualifications.

Harnessing experience
This is the first major project for Gammon Capital, which pre-qualified for the project in 2006 and was appointed preferred bidder towards the end of 2007.

The project has seen widespread integration of expertise within Gammon and its joint owners Balfour Beatty and Jardine Matheson. In particular, Gammon Capital worked with Balfour Beatty Capital in the development of a competitive bid, including collaboration on project finance, commercial, design and life cycle support.

The PPP expertise of Balfour Beatty Capital also enabled Gammon to put together an innovative financing structure to deliver value for money to ITE.

Advice from Balfour Beatty Capital was at the heart of the decision to introduce experienced educationalists to the Gammon team during the bid process. Their knowledge was an important aspect in the development of the highly functional and flexible design that ITE was seeking.