Around 300 much-needed construction jobs are to be created with the building of two Londonderry schools in a scheme valued at £38m.

Newry Construction firm O'Hare & McGovern along with its facility's management partner Interserve reached financial close on the Public Private Partnership project earlier this month.

This financial close stage allows construction to commence on the two new schools in the heart of Derry City with projected enrolments for in excess of 1,600 girls aged 11-18 years old.

St Cecilia's College, currently located on the former Templemore Secondary School site on the Northland Road, will be provided with new premises on the school's original site in the Creggan area of the City.

St Mary's College will relocate to new buildings provided on the vacated Templemore site.

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O'Hare & McGovern will provide equity and construction services while Interserve will provide equity and facility's management services.

Both companies are equal joint venture partners in Belfast Educational Services which is responsible for the design, build, finance and operation of both schools for 25 years.

Patrick Duffy, Finance Director of O'Hare & McGovern said: "We are delighted to have reached financial close on this project in a climate where raising long term capital funding can be challenging.

"Through our reputation and close partnership with Interserve we were able to gain financial support to close this particular transaction thus enabling construction to commence immediately."

Eamon O'Hare, Managing Director of O'Hare & McGovern added: "Reaching the final stage of negotiations on the Derry projects comes at the end of a successful week for us.

"We celebrated the official opening of another PPP Project at the 1800 pupil Holy Cross College in Strabane last Monday.

"We are also looking forward to a promising start to 2009 as we hope to reach financial close on the Down & Connor PPP incorporating four schools early in the New Year."

O'Hare & McGovern’s PPP contracts cover 14 sites throughout Northern Ireland.

Four of these projects are already in operation, six of them have reached construction stage and four are currently at 'preferred bidder' status.

(PR/JM)