John Laing and Interserve picked for Corsham defence PFI

Inteq, a consortium of John Laing and Interserve, has been named preferred bidder on the MoD's Corsham PFI project.

John Laing's investment in the project is expected to be more than £5m.

The MoD, through the Defence Communication Services Agency, aims to establish a communication centre at Corsham in Wiltshire. All essential MoD personnel and business partners will be on a single site.

The consortium will be responsible for working with Defence Estates to create and manage a working and living environment for an about 2,000 users of the site including offices and single living accommodation.

John Laing and Interserve will each have a 50% equity/sub-debt stake in the project. Interserve will provide a range of facilities management services over the 25 year concession period.

The contract is expected to reach financial close in late 2007, with construction completing in 2010.

Commenting on the deal, Adrian Ewer, chief executive of John Laing said: “We are delighted to be partnering with the MoD on this exciting project, which when completed will be a critical component in the security of the nation. Building on our strong reputation in the defence sector, this is a further demonstration of what can be achieved when combining the skills of the military and private sector.”

Adrian Ringrose, Interserve's chief executive, said: "This is excellent news. IIt is another substantial defence project, demonstrating the strength of our working relationship with the MoD and our ability to understand and meet their particular needs."