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PFI/PPP Contracts

Volume 453: debated on Monday 27 November 2006

To ask the Secretary of State for Defence how many private finance initiative and public private partnership contracts with his Department and its agencies have been won by Halliburton or its subsidiaries in each year since 1997; what the terms were of each contract; and if he will make a statement. (101227)

I refer the hon. Member to my answer of 4 April 2005, Official Report, column 1114W. Since then the Ministry of Defence has let a third private finance initiative (PFI) contract and no public private partnership contracts with subsidiaries of Halliburton.

In April 2006 a contract for project Allenby/Connaught was signed with Aspire Defence a consortium comprising the UK element of the Halliburton subsidiary KBR and Carillion. The contract is for the redevelopment of army facilities at Aldershot, Tidworth, Bulford, Warminster, Larkhill and Perham Down. It involves the rebuild, refurbishment, management and operation of facilities in the largest accommodation PFI project the Ministry of Defence has ever undertaken. Service delivery under the contract commenced on 10 July 2006. The 35-year PFI contract is worth, in whole life cost terms, approximately £8 billion (excluding VAT).