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Written question asked by David Heath (Liberal Democrat) on Tuesday, 19 February 2008, in the House of Commons. It was due for an answer on Wednesday, 27 February 2008. It was answered by Maria Eagle (Labour) on Thursday, 13 March 2008 on behalf of the Ministry of Justice.

Prisons: Contracts

Question
To ask the Secretary of State for Justice what the value of the initial contract awarded to each contracted-out prison currently in operation was; and what the operational cost of each contracted-out prison was in each of the last five years.
Answer

2 Information on the value over the life of the contract and the expenditure for each contracted prison is provided in the following table. Information on expenditure has previously been published on the Prison Service website in the annual accounts 2002-03, NOMS website in the office for contracted prisons statement of performance for 2004-05 and 2005-06 and the pre-audited financial information for contracted and commercial SLA prisons 2006-07. Information for 2003-04 was previously provided in a written ministerial statement.

Expenditure (£)
Prison Date of award of contract Value over the life of the contract¹ (£ million) 2006-07 2005-06 2004-05 2003-04 2002-03
Altcourse (DCMF) 20 December 1995 247 over 25 years 33,836,207 31,782,463 31,220,612 32,739,936 32,154,593
Ashfield (DCMF) 1 July 1998 121 over 25 years 19,984,049 19,808,188 16,706,138 13,662,084 9,820,999
Bronzefield² (DCMF) 20 December 2002 219 over 25 years 21,170,132 20,065,025 ³— ³— ³—
Doncaster (MO) 20 June 2000 140 over 10 years 21,455,301 20,367,274 19,230,566 19,097,051 19,252,815
Dovegate (DCMF) 27 September 1999 240 over 25 years 23,238,361 23,234,391 23,060,909 23,584,223 24,511,442
Forest Bank (DCMF) 6 July 1998 197 over 25 years 23,277,701 22,736,186 21,887,576 21,783,463 20,821,813
Lowdham Grange (DCMF) 7 November 1996 137 over 25 years 13,741,280 13,094,659 12,941,163 13,004,116 13,159,649
Parc (DCMF) 4 January 1996 266 over 25 years 36,939,202 33,539,477 32,365,812 32,529,421 31,322,995
Peterborough4 (DCMF) 14 February 2003 291 over 25 years 26,308,125 ³— ³— ³— ³—
Rye Hill (DCMF) 23 July 1999 154 over 25 years 14,746,072 14,722,833 14,401,669 14,935,111 14,103266
Wolds (MO) 5 January 2003 45 over 10 years 8,070,803 6,861,220 7,097,441 6,776,755 8,504,900
¹ 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 long-term projects and is calculated in accordance with the HM Treasury Green Book. This information has previously been published.
There is no direct relationship between the annual value of the contract shown and the NPV for the whole life of the contract.
² HMP Bronzefield did not open until June 2004. Part year information was excluded from the analysis.
³ Not open.
4 HMP Peterborough did not open until March 2005. Part year information was excluded from the analysis.
Note:
Expenditure figures have different elements included reflecting different management and financing arrangements for:
Manage Only (MO) establishments, the expenditure figures include:
Payment to contractors
Controller Team based at establishment
Design, Construct, Manage and Finance (DCMF) expenditure figures include:
As aforementioned for Manage Only
Adjustment for the capital repayment element in contractual payments.

Secondary information

Type
Written question
Reference
188238; 473 c634W;473 c630-2W
Session
2007-08
Subjects
Private sector Prisons
Link
View this Written question on www.publications.parliament.uk