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Volume 472: debated on Wednesday 20 February 2008

To ask the Secretary of State for Justice what the value of new contracts let for prisons was in each of the last 10 years, in terms of (a) annual value and (b) value over the life of the contract. (185545)

The following table gives the financial details available regarding prison contracts awarded in the last ten years

Date of award of contract

Name or prison

Annual value at current prices (£)

Value over the life of the contract (£)

1 July 1998



121 million over 25 years

6 July 1998

Forest Bank


197 million over 25 years

23 July 1999

Rye Hill


154 million over 25 years

27 September 1999



240 millions over 25 years

20 June 2000



140 million over 10 years

20 December 2002



219 million over 25 years

5 January 2003



45 million over 10 years

14 February 2003



291 million over 25 years


1. The annual value is based on the payments made to the contractor during the contractual year.

2. The value over the life of the contract is based on the net present value (NPV) calculated for the winning bidder at the award of the contract. The NPV is a. standard method used for the financial appraisal of log term projects and is calculated in accordance with the HM Treasury Green Book. This information has previously been published.

3. There is no direct relationship between the annual value of the contract shown and the NPV for the whole life of the contract.

4. We do not hold details of annual contractual value for the duration of the contract as there are a number of changeable factors e.g. population levels, services requirements which would have a significant impact on the values.

To ask the Secretary of State for Justice by what means prisons are assessed on the effectiveness of their community engagement. (186209)

The effectiveness of community engagement in establishments is measured by internal audits of the Prison Service Standard on Race Equality. These are conducted annually.

It is also measured during inspections by Her Majesty’s Chief Inspector of Prisons.