News / SIC says new Anderson High “a good deal”
ACHIEVING financial close for the new Anderson High School has been described as “an extremely good deal for the people of Shetland” by the council’s chief executive.
This week Mark Boden and the SIC’s executive manager for finance, Jonathan Belford, gave further details of the £55.75 million building project, which is now under way at Lower Staney Hill site, in Lerwick.
The chief executive said the council has been successful in convincing funders Scottish Futures Trust (SFT) that building the school and associated 100-bed hostel for a fixed price of £55.75 million was very good value for money.
Of this Shetland Islands Council will have to pay £18.85 million (34 per cent) while the Scottish government, through the SFT is committed to come up with the remaining 66 per cent.
Additional work to extend and convert the Clickimin Leisure Complex to become the new school’s gym has been priced at £3 million.
This will be fully funded by the council, which is taking advantage of a £500,000 grant from SportScotland.
Infrastructure work to gain access to the new school – and the proposed Staney Hill housing development – is costing a further £1.25 million.
The government body had initially set an affordability cap at £42 million but it quickly became clear that an 1180-pupil school could not be built for that price in Shetland.
“They gave an affordability cap of initially £42m, and said ‘providing you meet all our criteria about design and value for money’, we will fund two thirds of that amount of money,” Boden said.
“After the project had gone through its multiphase design and value for money studies and had been market tested, it became clear that in Shetland the cost of the project would in reality be £55.75 million.”
The chief executive added: “The SFT on behalf of the Scottish government was more than happy that the team had designed it properly, tested the market rigorously and so they have agreed to provide two thirds of £55.75m.
“But understandably and rightly, what they kept back for themselves was control over how much they were to contribute, and they now have agreed to contribute £36.9 m, which is brilliant.
“It is an extremely good deal for the people of Shetland because it means we are getting a £55.75 million school for £18.85 million.”
Finance chief Belford said the council has set aside sufficient funds for its share of the overall project.
The main contractor to build the new school is Morrison Construction, contracted by Hub North and not the SIC.
Boden said: “Hub North is contracting with Morrisons and will deal with all the normal ‘during the build’ issues.
“The council is not running this project, so it is very clear: Hub North has promised to deliver that school for that price. If it ends up costing them more, they will have to pay it, not us!”
The school is scheduled to be completed by September 2017.
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