Aberdeen Schools - £120m scheme 'funded by Iceland'

The BBC are reporting that the current project to refurbish 10 Aberdeen schools is being funded by money from a collapsed Icelandic Bank.

The Icelandic government seized control of Landsbanki earlier this week. So far the council has not commented on the impact of the Landsbanki collapse on the project or the extent of the bank's involvement in the deal.

Aberdeen City Council signed a public private partnership agreement with a consortium in February. The deal involved the consortium designing, building, financing and operating the schools over 30 years. Under the project, two new secondaries and seven new primaries will be built, with another primary being refurbished.

Aberdeen council are of course so cash strapped they couldn't actually afford to have money invested in the banks unlike other councils in Scotland who may have lost substantial amounts of money.

What the impact of this is on the schools and on current schools, some of which are under construction, remains to be seen.

BBC NEWS Scotland North East/N Isles £120m scheme 'funded by Iceland'