Financial close achieved on Zayed City Schools: a pioneering PPP in Abu Dhabi

ABU DHABI, UAE – The BESIX – Plenary Group consortium has achieved financial close of the Zayed City Schools PPP in Abu Dhabi.

This is the UAE’s first school infrastructure public-private partnership, a pioneering project that paves the way for private sector participation in the development of the country’s social infrastructure.

The project was awarded to the BESIX – Plenary consortium by the Abu Dhabi Investment Office (ADIO), in collaboration with the Abu Dhabi Department of Education and Knowledge (ADEK).

It comprises the financing, design, procurement, construction, commissioning, and 20-year operations and maintenance of three new state-of-the-art school campuses with a total capacity of 5,360 students in Zayed City, Abu Dhabi.

The debt provider group comprises financial institutions HSBC, Intesa Sanpaolo and The Norinchukin Bank. They provide senior debt financing with a long-term maturity. 

“This is an important milestone in the exciting growth phase of the Plenary business, and we are pleased to be collaborating with BESIX – who we have previously partnered with in Australia – ADIO and ADEK to deliver this fantastic project,” said Plenary Chief Investment Officer Paul Crowe.

“The strength of our PPP project development experience in Asia Pacific and North America has presented opportunities for us to export our skillset to other regions adopting a private partnership model. We commend the Abu Dhabi Government on its impressive program of infrastructure development and investment and its acknowledgment that private sector capital can support its ambitions to deliver infrastructure vital for social and economic growth. We look forward to delivering this exciting project and future opportunities in the region.”

BESIX Middle East General Manager Peter Lembrechts said, “BESIX is extremely proud to partner with the Abu Dhabi Government to develop and implement this pathfinder PPP project. We are providing campuses with specialist expertise to support the project from start to finish, in terms of financing, engineering, construction, and long-term maintenance. In Plenary Group we have found a world-class partner to develop and deliver this project. We look forward to the next steps and would like to thank ADIO and ADEK, as well as the leading international financial institutions and advisors that are supporting us, for their confidence and commitment to ensure the success of the project.” 

World-class school campuses 

The school campus buildings have a dual priority of academic excellence and high environmental performance. 

The campuses will feature state-of-the-art facilities and equipment, allowing for world-class education. 

The buildings will be designed and built with high sustainability objectives, complying with the Estidama Pearl 2. The buildings will be low-energy buildings with a focus on usage and consumptions efficiency, and the partners will give priority to the use of locally produced building materials. 

The project covers a greenfield plot for each of the three new schools across Zayed City, a 4,900-hectare construction project being built seven kilometres inland from Abu Dhabi Island, between Mohamed Bin Zayed City and the Abu Dhabi International Airport. 

Construction on site is still expected to start in 2022 and be completed in August 2024, with schools opening in September 2024.