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Ministry of Defence;Defence Procurement Agency

Answer

Mr. Hancock: To ask the Secretary of State for Defence what competition has been conducted to procure an enhanced strategic sealift capability under PFI arrangements; what the cost of the contracted programme is; when the improved strategic sealift capability will be available to the Royal Navy; and if he will make a statement. [139651] Dr. Moonie: This is a matter for the Chief Executive of the Defence Procurement Agency. I have asked the Chief Executive to write to the hon. Member. Letter from Robert Walmsley to Mr. Mike Hancock, dated 28 November 2000: I am replying to your question to the Secretary of State for Defence about the strategic sealift capability. This matter falls within my area of responsibility as Chief of Defence Procurement and Chief Executive of the Defence Procurement Agency. The competition for the strategic sealift service was subject to EC treaty and public procurement rules and was advertised in the official journal of the European Union. As announced by the Secretary of State for Defence on 26 October (Official Report columns 413-414), subject to final negotiations, we intend to sign a 25-year Public Finance Initiative (PFI) contract with AWSR Shipping Ltd. Based on expected usage of the ships, the contract will be worth around £950M and is expected that the full service will be available by 2003. An interim sealift service will be provided by charter in the short term. The service will be available to all Defence users requiring sealift.

Secondary information

Type

Written question

Reference

357 c494W; 139651

Session

1999-00

Subjects

Costs Freight Private finance initiative Procurement Navy Shipbuilding

Link

View this Written question on www.publications.parliament.uk