Lewisham PFI deal faces further delays

The £70m Downham Lifestyles PFI leisure project for Lewisham Council has hit further delays this month, despite pointed criticism of the preferred bidder’s performance last month by Lewisham’s mayor Steve Bullock.

At a council meeting in March, the mayor accused the preferred bidder, Linteum/Leisure Connection, of slowing proceedings while it focused on its contract with Brent Council for the £16m Willesden Leisure Centre, another scheme which has suffered delays.

A final deadline of 11 March was given for signing the Lewisham contract, which is now running more than a year behind schedule. However, CJ has learnt that the latest deadline for financial close has been breached.

At the meeting, the mayor said: “Despite every effort having been made by officers, negotiations with the preferred bidder, Linteum/Leisure Connection, have slowed due to its concentration on completing another leisure PFI project which, for various reasons, has taken much longer to finalise than anticipated.”

The mayor said the consortium’s resources had been stretched by using the same project manager for both contracts.

“With one project manager for the consortium handling both projects this has led to a pinchpoint in negotiations with the consortium. We have made clear our dissatisfaction on how the consortium has handled this.”

However, despite the mayor’s broadside and the setting of the 11 March deadline, a council spokeswoman confirmed the deal has yet to be signed. “There have been some delays in the project but we have made progress with our partners and are now finalising the details to move to the next stage,” she added.

A Leisure Connection spokeswoman said: “All parties involved are working as hard as possible to get to financial close.”

Leisure Connection, in consortium with Linteum and NIB Capital Bank NV, won the 30-year contract in July 2003. The contract is a “joined up” PFI, linking services between the leisure, library and health sectors.

The facilities, including some housing, will be located at two sites in the Downham area.

Alfred McAlpine Special Pro-jects has been subcontracted to do the design and construction  and Wates Homes assigned to develop the residential housing estate.