PUPILS will benefit from £150m to improve schools.

The money will fund schemes across the borough, including the building of a voluntary-aided school for Sacred Heart RC School, in Redcar, and two community schools for Bydales and Marske.

Money will also go to Gillbrook Technology College, in South Bank.

Two new primary schools will be built following the approval for the amalgamation of St Alban's with St Dominic's, in Redcar, and the joining of Beech Grove with Cromwell Road, in South Bank.

Nunthorpe Secondary School, in Nunthorpe, near Middlesbrough, will be extensively refurbished and remodelled thanks to the cash.

Work is expected to start in January next year and is due to be completed in September 2006.

The schemes are being supported by £48.9m from the controversial Private Finance Initiative Credits (PFI), through Government funding and the rest through the public-private partnership.

Redcar and Cleveland Borough Council announced yesterday that the preferred bidder for the design, build, finance and future management of all the schools is The Mowlem Robertson Schools Consortium.

Councillor Steve Kay, cabinet member for education, said: "This is a giant step forward for education in Redcar and Cleveland, providing a massive investment in new schools, and refurbishment of Nunthorpe Secondary School.

"Dilapidated buildings will be replaced by modern structures and facilities that are designed for youngsters of the 21st Century.

"Tribute must be paid to local authority staff in our education department, the schools themselves, and the bidders. This development is the culmination of many months of effort and hard work."

Tony Jackson, bid manager for Leeds-based Mowlem Plc, said the consortium was delighted to have been chosen as preferred bidder for such a high profile project.

He said: "We are now looking forward to continuing to work with the council officers in order to conclude the deal and enable work to start on the construction of the schools in January 2005 so they can be ready for occupation from September 2006."

Labour opposition leader George Dunning welcomed the investment.

He said: "£150m for education is excellent news for the borough and should be welcomed.