The Government has formally released funding to allow Bradford Council to press ahead with the second phase of its £400 million school rebuilding project.

Long-awaited, the announcement brings to an end a six-month delay for the plans to reach financial close – a hold-up senior Council officials blamed on bleak, global economic conditions.

Phase two of the Council’s Building Schools for Future (BSF) programme is the biggest single project in the country at £171.5 million – a combination of central government funding and Bradford Council’s contribution.

A further £43.5m has been released as Private Finance Initiative credits.

Beckfoot School, Grange Technology College, Hanson School and Greenhead High School are all set to be re-built as part of the project. A Hearing Impaired Unit will be created at Hanson and three secondary special schools will be built on the sites of the other three.

Tim Byles, chief executive of Partnerships for Schools, the Government body set up to deliver the BSF programme nationally, said: “I’m pleased that we have reached financial close on the second phase of Bradford’s scheme to transform where and how students learn across the area.

“Before the turn of the year, no banks were lending into BSF. Today there are up to 20 financial institutions who have indicated they are in the market to lend.

“This level of interest means that deals are continuing to close, feeding through to jobs on the ground in the construction sector, and – critically – schools opening the length and breadth of the country.”

Councillor Michael Kelly, executive member for services to children and young people, said it was an “incredibly exciting” time.

“It’s been a difficult process to secure funding in the current economic climate, but we are still on schedule to deliver the schools.

“We’ve been working hard to secure this money for the district and it’s great to see work forging ahead on site.”

Preparation work is under way at the four sites which will be completed in March, 2011.

Kath Tunstall, the Council’s strategic director for services to children and young people, said: “I’m particularly delighted that this will enable us to deliver the complete re-organisation of our special education services and provide first-class environments in which our children can learn.”

Tony Smith, the general manager of Local Education Partnership, Integrated Bradford, said the announcement was “excellent news for Bradford”.

He said: “Everyone has pulled together to keep the programme on track through a period of financial instability, but the way is now clear to press ahead with the major programme of work.”

Integrated Bradford is a consortium led by Amey Costain and HSBC Infrastructure Management which works with the Council to deliver the district’s BSF programme.

The first three new schools opened last September – Tong High, Buttershaw and Titus Salt.

Phase three involves the re-building or re-modelling of 13 other secondary schools. The Council has submitted the Outline Business Case to Partnerships for Schools and design work and consultation is ongoing.