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Departments: PFI

Volume 458: debated on Monday 12 March 2007

To ask the Secretary of State for Defence for which future projects his Department is considering a private finance initiative deal; what the estimated lifetime value of each potential contract is; and what period each will cover. (125188)

The Ministry of Defence is considering using the private finance initiative for the following projects which are at preferred bidder status:

Project name

Estimated contract length (years)

Future Strategic Tanker Aircraft (FSTA)

27

Future Provision of Marine Services (FPMS)

15

Corsham Development Project (CDP)

25

Defence Training Rationalisation (DTR)

30

I am withholding details of the estimated lifetime value of each potential contract. The information would, or would be likely to, prejudice the commercial interests of the Department as these projects are still subject to continuing negotiations with their preferred bidder.

The Department is also considering the use of the private finance initiative for a joint project with the Maritime and Coastguard Agency, the Search and Rescue Helicopter project. The estimated capital value of this project is £400 million with an estimated contract length of 25 years.