Skanska will build a new prison at Belmarsh West, London under a £100 million contract with Serco Group after the service company signed a deal with the Ministry of Justice to provide and operate the new prison.
The overall contract value is approximately £415 million and will run for 26 years.
Serco had previously been selected in June 2009 as preferred bidder to provide and operate Belmarsh West and a further prison in Maghull Liverpool. It is understood that the Maghull contract will be signed later this year.
The deal is said to be worth £100m for Skanska, who will build the prison the category B standards. Construction works will commence immediately, with completion expected in the first half of 2012.
Serco Group chief executive Christopher Hyman said: “Serco has a strong track record internationally of providing high quality service in the management of prisons, focused on cost effective care and successful rehabilitation. I am delighted that this high level of performance and innovation has been recognised with the award of this contract for Belmarsh West by the Ministry of Justice.
“Our consortium comprises some outstanding delivery partners, including Skanska, with whom we have worked since 1994 and our third sector partners Catch22 and Turning Point who are renowned for their rehabilitation and resettlement solutions.”