A NEW preferred bidder for a £230m partnership scheme with a council - which could create 2,000 jobs - has been announced.

Developer Liberata has replaced Amey for the contract after Redcar and Cleveland Borough Council said parts of Amey's original programme were 'unachievable'.

A major part of the project includes a £45m school for the district.

Councillors made their choice at a meeting at Eston Town Hall this week.

Liberata, which would provide key council services and tender its services across the country, would:

* Create 100 jobs in facilities management

* Create 2,000 jobs over ten years

* Invest more than £23m in communications technology over ten years

* Make savings of more than £56m over ten years

* Establish a business centre and training skills unit.

The 1,100-place school would replace Freebrough Community College, presently at three sites in Skelton, Loftus and Brotton.

Councillor David Walsh, council leader, said: "The delivery of this contract is central to ensuring the council moves from 'fair' into the 'good' category and later to 'excellent' under the Audit Commission's Comprehensive Performance Assessment."

The project could start as soon as April if negotiations go well.