Espoo pioneering in public procurement of new schools and day care centres

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2020-06-10 8:00

The City of Espoo has signed a significant new model service contract with a private project company for procurement of new schools and day care centres. Construction of the first schools will begin immediately.

Last year, the City of Espoo awarded the contract for design, building, financing and maintenance for a period of 20 years of eight schools and days care centres to the project company established by YIT Corporation and Meridiam Investments II. The service contract has now been signed and construction of the premises covered by the project can proceed.

Being the first PPP (Public Private Partnership) model service contract for building construction in Finland, Espoo’s newly adopted procurement model for schools and day care centres has aroused international interest as well.

As a service provider, the private project company undertakes to build and maintain the facilities, releasing the city’s valuable resources from planning single targets to other activities.  Shouldering most of the risk, the service provider will be encouraged to avoid project delay and to make cost-efficient decisions. Once the maintenance period is over the facilities to be transferred to the city will also be in good condition.

”The service contract for the most extensive school procurement project undertaken by the City of Espoo so far has been prepared intensively since autumn 2018.  Signing the contract is a major milestone for Espoo and for the entire country in the pioneering work that marks the start of a new procurement practice”, says Olli Isotalo, Head of Technical and Environment Services of City of Espoo.

A multitude of new schools and day care centres for Espoo residents

The schools to be built during the project are situated in different parts of Espoo. The first three buildings to be constructed are Pohjois-Tapiola Comprehensive School, Perkkaa Comprehensive School and Youth Centre as well as Nauriskaski Comprehensive School. Construction of all three schools is expected to be completed during 2020. Others to be constructed during 2021-2023 according to the same model are Perkkaa Day Care Centre, Nöykkiönniitty Day Care Centre, Kilo Comprehensive School and Day Care Centre and the Lower Stage of Kuitinmäki Comprehensive School. Nearly 4.000 children will be occupying the new facilities.  

The PPP model is a part of the Koulut kuntoon (School Renovation) programme aimed at providing children with healthy and safe environments in schools and day care centres. During the next ten years, the City of Espoo will invest 940 million euros in new schools and day care centres and renovation of buildings.