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No PFI for phase two of £16bn MoD deal

The Ministry of Defence has said it will not use PFI as the delivery method for the second half of its £16 billion training facility at St Athan in Wales.

The job - originally touted as the largest PFI contract ever awarded - has been split into two parts.

The first half valued at £9.5 billion will still be awarded using PFI. However the MoD is now looking at alternative ways of delivering the £6.5 billion second half of the package, which includes training facilities for security, languages and logistics.

The first half of the package delivers training for engineering, communications and information systems over 25 years at a new site in St Athan.

It was won last year by the Metrix consortium, including Laing O’Rourke, Land Securities Trillium and QinetiQ.