Prisons unlock opportunities

The Home Office is said to be extending its design, build, finance and operate prisons programme from six private jails to 10, according to a member of one of the consortia bidding for the work.

Guy Leonard, partner at cost consultant Franklin & Andrews, says that the cost-savings through this route of prison construction are high for the Government and that the work will be lucrative for the winning consortia, which will make 'phenomenal profits'.

The opportunity for making hefty profits stems from the inefficiency of the existing government-run prison service.

Leonard said: 'The private sector will do it cheaper but will make phenomenal profits. When you start with true, open competition, if you make money then that's business.'

Five groups are tendering for the UK's first pair of privately financed prisons, the 800-bed units at Bridgend, south Wales, and at Fazakerley, Merseyside.

Franklin & Andrews has been retained as construction consultant by the UK Detention Services consortia, whose members are Correction Corporation of America, Mowlem and Sir Robert McAlpine.

The other four consortia are: Premier Prison Services (Wackenhut and Trafalgar House); Group Four (with Tarmac); Alfred McAlpine, Dumez and Pell Frischmann; Securicor and WS Atkins.