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MoD's review delays Chelsea Barracks again
16:46 23 Jun 2004
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The jury is still out on the fate of the beleaguered £150m
Chelsea Barracks PFI scheme.
The MoD Investment Approvals Board is conducting a review of the project, following the withdrawal of the Amec/Berkeley Homes consortium that left Regalian Properties/Bovis Lend Lease as the project's sole bidder (CJ 10 September 2003).
The Board must decide whether it is best value for the PFI contract to continue with a sole bidder or to relet it, probably as a prime contract.
The Board's decision was due last week, but MoD sources said the Treasury must first ratify it.
A spokesman said: "It is still before the Treasury. We understand it is in a queue and expect to hear by the end of the month."
MoD sources close to the project expressed frustration at the latest delay. One said: "We really hope there is a decision soon. There is the wider problem of drift. Time is marching on and the accommodation continues to deteriorate, which will push up costs. At the same time Bovis could get bored and go and do something else."
A spokesman for Bovis Lend Lease said: "We remain fully committed to the project."
The MoD Investment Approvals Board is conducting a review of the project, following the withdrawal of the Amec/Berkeley Homes consortium that left Regalian Properties/Bovis Lend Lease as the project's sole bidder (CJ 10 September 2003).
The Board must decide whether it is best value for the PFI contract to continue with a sole bidder or to relet it, probably as a prime contract.
The Board's decision was due last week, but MoD sources said the Treasury must first ratify it.
A spokesman said: "It is still before the Treasury. We understand it is in a queue and expect to hear by the end of the month."
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MoD sources close to the project expressed frustration at the latest delay. One said: "We really hope there is a decision soon. There is the wider problem of drift. Time is marching on and the accommodation continues to deteriorate, which will push up costs. At the same time Bovis could get bored and go and do something else."
A spokesman for Bovis Lend Lease said: "We remain fully committed to the project."
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