The contract term is 25 years with a total funding requirement of £30m. John Laing is providing 80% of the equity and Shepherd Construction will provide the remaining 20% and build the new fire stations.

In addition to the investment, facilities management services will be delivered by John Laing Integrated Services over the concession with a contract value of around £800,000 per annum.

David Hardy, Director of Infrastructure Projects for John Laing, said: “This project will dramatically improve facilities for the fire and rescue service in the North East, who are facing diverse and rapidly changing challenges - from the management of major incidents and ensuring a safer community, to the impacts of climate change. We are delighted to have reached Financial Close on our first fire and rescue project, and look forward to a strong and collaborative partnership with the Authorities”.

Allan McDougall, Divisional Chief Executive of Shepherd Construction, said: “This exciting project will see five new stations built over the next year. Each one will include community facilities, allowing the fire authorities to link to local people and proactively look at fire prevention and safety issues.
“The North East is leading the way with these stations and we look forward to working closely with the authorities to deliver such modern and innovative facilities.”