Besix consortium announces financial close of Abu Dhabi school project
ABU DHABI, 19 hours, 23 minutes ago
Belgian infrastruture major Besix has announced that its consortium with Plenary, an independent investor, developer and manager of public infrastructure, specialising in public-private partnerships, has achieved financial close on the Khalifa City School project in Abu Dhabi.
The project was procured using an augmentation procurement framework within the existing Zayed City Schools public-private partnership (PPP) Project.
Led by Abu Dhabi Investment Office (ADIO), the design and use of this framework to procure school infrastructure marks another first for the region.
Due to significant demand, the Abu Dhabi Department of Education and Knowledge (ADEK) required Khalifa City School to be operational by August 2026, a timeline that could not be achieved via a traditional procurement process.
Through meticulous planning and implementation, ADIO developed a specific augmentation framework that enabled the school’s infrastructure to be procured and awarded within a record timeframe of just 12 months, demonstrating ADIO’s commitment to delivering critical infrastructure efficiently and on schedule.
This approach aligns with ADIO’s broader efforts to attract and enable investments that support the emirate’s vision for world-class educational infrastructure, it stated.
The augmentation comprises the design, build, finance, and 18-year operation and maintenance of a new campus, which will accommodate 3,380 students in Khalifa City.
Early works commenced in July, with construction scheduled to begin shortly. The school is scheduled to be completed in time for the 2026 academic year, building on the success of the original Zayed City Schools project, which delivered three state-of-the-art schools on time earlier this year.
ADIO led the augmentation process in collaboration with the ADEK and the Besix-Plenary Group consortium. Besix-Plenary delivered a value-for-money solution, subsequently reaching commercial and financial close.
Equity financing is provided by Plenary (50%) and BESIX (50%), while debt is being provided by leading domestic and international banks Abu Dhabi Commercial Bank, HSBC, Intesa Sanpaolo and Norinchukin.
Plenary Group Chief Investment Officer Paul Crowe said the augmentation deal underlines the flexibility of the PPP model and the ability to enhance value for money for the procurer.
"This project, and the underlying Zayed City Schools project, is a great demonstration of the strength and flexibility of the PPP model. The Khalifa City School is a brilliant result for ADEK and its future students and staff, and we are proud to have provided such a meaningful outcome for ADIO," he stated.
Peter Lembrechts, General Manager of Besix Middle East said: "Besix’s strength lies in our unique combination of capabilities: equity investment, EPC expertise, and long-term operations and maintenance leadership."
"This integrated approach allows us to deliver successful projects at every stage, creating lasting value for all stakeholders," he added.
The Zayed City Schools project delivered three new state-of-the-art school campuses with a total capacity of 5,360 students earlier this year.
Elias Sfeir, the Head of Concessions & Assets, Besix Middle East, said: "Leveraging our combined financial strength, technical expertise, and a unified vision to deliver ADEK's and ADIO's goals for sustainability and innovation, this strong partnership will once more redefine possibilities and set new benchmarks in infrastructure development." -TradeArabia News Service
