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Strategic Tanker Aircraft

Volume 400: debated on Monday 24 February 2003

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To ask the Secretary of State for Defence when he expects to award a contract for the Future Strategic Tanker Aircraft programme; and what delays there have been to the originally forecast in-service date. [97187]

Final bids for this prospective PFI project are expected from two consortia on 30 April 2003. We will be doing all that we can to down select a preferred bidder by the end of this year and aim to sign a contract by the end of 2004, although the precise timing will depend on a range of factors including a period of bankers' due diligence. We have delayed the planned introduction of the PFI service by one year from 2007 to 2008, to allow time for the PFI negotiations to be completed.

To ask the Secretary of State for Defence when the MOD is expected to award a contract for the RAF's Future Strategic Tanker Aircraft; how many aircraft will be commissioned; how they will be deployed; what the projected costs are; when the aircraft will come into service; what the length of the contract is; and if he will make a statement.[97493]

Final bids for this prospective 27-year PFI contract are expected from two consortia on 30 April 2003. We will be doing all that we can to down select a preferred bidder by the end of this year and aim to sign a contract by the end of 2004. although the precise timing will depend on a range of factors including a period of bankers due diligence. The number of aircraft needed to meet our service-based requirement varies between the commercial solutions. However, a total fleet size of up to 20 aircraft is anticipated. Operational deployments will be undertaken under the Command and Control of the Royal Air Force. The project has an estimated through life value of around £13 billion and is scheduled to enter service in 2008.