£1.15 billion Contract to Redevelop the Northwood Military Headquarters Site and Provide new and Refurbished Accommodation
31 Jul 2006 11:45 AM
A £1.15 billion contract for the redevelopment, management and
operation of facilities on the Northwood Headquarters site was
announced by Defence Minister Tom Watson today.
The 25 year contract for Northwood has been finalised with Eastbury
Park Limited, a joint venture between Carillion Private Finance
(Defence) Limited and HSBC Infrastructure Fund Management Limited.
It will see the significant redevelopment of the 43 acre site at
Northwood, Middlesex, the home of the Permanent Joint Headquarters
(PJHQ), which runs all UK military operations worldwide.
The contract will bring about a mix of new buildings, the retention
and refurbishment of some existing buildings and the demolition of
surplus buildings. This will be achieved through a phased process
over a five-year period.
Mr. Watson said:
"We value the men and women who serve in our Armed Forces, and we are
doing all we can to demonstrate this. They deserve a modern and
fully serviced work environment and accommodation and that is what we
are delivering.
"The Northwood PFI project is a key element of MOD's commitment to
achieve improvements to its Estate and to improve the conditions in
which our personnel live and work. We have established a cost
effective long-term solution to support the UK's national operational
defence headquarters, that will also address a number of deficiencies
associated with this ageing site.
"The award of this contract is a major step forward and I look
forward to a long and fruitful relationship with Carillion Defence."
John McDonough, Carillion Chief Executive said:
"Carillion are delighted to have been appointed to the Northwood
Headquarters and are pleased to be working with the MoD to deliver
modern Headquarters, accommodation and services to the Permanent
Joint Headquarters, Fleet and NATO Headquarters.
"We recognise that this is an important project for the MoD, and we
are confident that the expertise of Carillion will deliver real
benefits for Northwood Headquarters and a value for money solution
for the taxpayer.
"Carillion has designed new Headquarters facilities within the 43
acre site that will create a positive, 21st Century environment in
which the Chief of Joint Operations, Fleet and NATO personnel can
live and work."
Chief of Joint Operations Lieutenant General Nick Houghton CBE said
he is looking forward to this development in the future of PJHQ.
"This is a very busy headquarters which, since going live in 1996,
has pushed a heavy workload onto the shoulders of a very professional
team responsible for military operations and operating bases around
the world," he said. "PJHQ was shoehorned into an existing site ten
years ago, and has grown as its role developed. Simply put, the
headquarters has produced remarkable results for the UK in
sub-optimal working conditions.
"A new build, specifically taking into account this working
environment, along with the ongoing support across the Northwood HQ
site is to be welcomes. It's not just deserved and needed by our
staff, but will help us to go forward in the 21st Century."
PJHQ is responsible for all UK involvement in overseas operations as
well as maintaining the Permanent Joint Operating Bases ranging from
the South Atlantic to the Indian Ocean.
NOTES TO EDITORS
1. The Northwood Headquarters is a high-density, 43-acre site
providing employment for over 2000 military and civilian personnel.
Whilst part of the underground facility has benefited from major
investment, the remainder of the site infrastructure needs to be
upgraded.
2. The site hosts the Permanent Joint Headquarters (PJHQ), which
commands all UK overseas military operations.
3. The Northwood Development Project team was established to examine
the best way of meeting these requirements, with the aim of improving
the living and working environment of all personnel, whilst achieving
long term value for money.
4. The Northwood Development Project team undertook a detailed study
into the best way of meeting the Headquarters needs. The study found
that a considerable amount of investment was required to meet these
requirements and the potential for private sector investment through
a Private Finance Initiative (PFI) was explored. This process
concluded that a PFI procurement offered the potential for better
value for money and improved service delivery compared to traditional
procurement methods.
5. MONOCO (a Mowlem consortium) was awarded preferred bidder status
in July 2005 - Mowlem were taken-over by Carillion in 2006. Carillion
Defence will provide new works and refurbishment of existing
buildings, and will provide the services element of the contract.
Planning permission for the scheme was granted by the Three Rivers
District Council in Feb 2006.
6. The MOD team based at Northwood is in charge of the day to day
management of the project, reporting to Air Vice Marshal Andrew
Walton (Deputy Chief of Joint Operations (Operational Support)), the
Senior Responsible Officer for the project at the Headquarters.
7. The redevelopment is one which retains the best qualities of the
site; both natural and built. It seeks to redesign the layout of the
buildings and spaces and provide high quality facilities which will
ensure the continued use of this site for its current functions and
activities. Although internally the benefits of the proposals are
substantial, from an external point of view the development will have
a minimal impact. The amount and mix of floor space does not change
substantially and a similar number of people will live and work on
the site: furthermore, the position of the permanent accesses also
remain.
8. PFI is an important part of the Government's drive towards greater
efficiency and, along with other forms of public/private
partnerships, offers an alternative to traditional procurement
methods. Ministers have endorsed the use of PFI to provide services
throughout the Department where PFI has been demonstrated to offer
best value for money
9. For more information on the MoD, please call Jenny Moran at the
MoD press office on 020 7218 5903 or visit www.mod.uk. For
information regarding PJHQ please call Ken Johnston Deputy Head Media
Operations at PJHQ on 019238 46034 or visit www.northwood.mod.uk. A
jpeg image is available of the planned redevelopment.
10. Carillion is a leading provider of integrated solutions for
buildings, infrastructure and services in the UK, with
well-established businesses internationally. As a FTSE 250 company
with annual revenue in the region of £4 billion and over 40,000
employees, the Group delivers high quality, cost effective and
sustainable solutions using its wide range of skills and resources.
Its key target markets are defence, health, education and transport
(rail and road infrastructure), building and facilities management
and support services for public and private sector customers.
Carillion is also a leading provider of Public Private Partnership
projects and has a portfolio of 30 financially closed projects in
which it has invested, or has commitments to invest, a total of
approximately £173 million of equity.
For more information on Carillion, please call John Denning on 01902
316426, or visit www.carillionplc.com
11. HSBC Infrastructure Fund Management Limited has invested directly
or though infrastructure funds in over twenty PFI/PPP projects across
a range of sectors including health, education, transport and
defence. HSBC Infrastructure Fund Management Limited is an
indirectly-held, wholly-owned subsidiary of HSBC Holdings plc. HSBC
Group has an international network comprising 9,500 offices in 76
countries and territories and its most recent published interim
accounts show total assets of U.S.$1,502 billion as at 31 December
2005.
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