MoJ to build five new PFI prisons in place of Titans

Five new prison schemes, which will replace the Government's ditched Titan prisons programme, are to be delivered via a new streamlined form of PFI.

The first two PFI schemes, providing 1500 cells each, will be built at Beam Park West in Dagenham, Kent and at Runwell in Essex. The other three schemes have yet to be revealed by the Ministry of Justice.

Both schemes will be procured using a PFI contract that has been refined after the Office of Government Commerce  (OGC) raised concerns last year about the lengthy procurement of Maghull and Belmarsh West prisons and the complex way the competitive dialogue procedure was being used. The Belmarsh West and Maghull PFI deals were let over two years ago and have yet to be closed.

An MoJ spokesman told CJ:  "Following the OGC's criticisms over the length of time taken to procure Belmarsh West and Maghull prisons and the use of the competitive dialogue we are looking at ways to speed up the process.

"Through the current procurement of Maghull and Belmarsh West we have developed a standard form of custodial contract which we expect to speed up the process of PFI procurement in future competitions."

The MoJ has also set up a Procurement Directorate to speed up the MoJ's prison building programme.

The Beam Park West and Runwell PFI schemes are expected to be completed by 2013, an MoJ spokesman said.

PFI players welcomed the move. One PFI funder said: "PFI was originally created to deliver infrastructure services when public funds were tight. That time has come again and PFI could increasingly be used to plug that funding gap."

However a prisons contractor said: "It is disappointing news. PFI by its very nature is slow and expensive. The Government needs to create desperately needed jobs now, not in two or three years time when it will be too late."