Carillion JV wins £3bn contract at RSME

01 September 2008

Carillion, in joint venture with Babcock, has secured a 30-year, £3bn contract for the provision of training and training support, infrastructure and services at the Royal School of Military Engineering (RSME) in Medway, Kent and Minley, Hampshire.

The JV, Holdfast, will deliver some £300m of capital works, for both new and refurbished soldier accommodation, including around 1,700 soldier bed spaces; training enhancements; more efficient use of the training estate; lower running costs and greatly improved facilities as well as the introduction of retail, catering and leisure to deliver a family-friendly environment. This will also enable about 300 military personnel to return to the Field Army from the Training Division.

The JV partners will invest a total of £17.4m of equity in this project, with Carillion investing £5.5m.

Holdfast is now entering a lead-in period with services to be delivered by Babcock due to start in January 2009. The £300m capital works programme, involving construction and refurbishment, will be carried out by Carillion over the first seven years of the contract. Under the contract, the responsibility for training delivery will be shared between the RSME and Holdfast, with the focus on the delivery of relevant training in an efficient and effective way.

John McDonough, chief executive of Carillion, said: “We look forward to delivering improved facilities to meet the existing and future training requirements of the RSME. This builds on the excellent relationship we have developed with the MoD across a range of contracts, the largest of which is the £12 billion Allenby Connaught Public Private Partnership project.”