Move to replace Trillium on £12bn MoD job 'advanced'

Moves to replace Land Securities Trillium (LST) on the MoD’s £12bn Defence Training Programme PFI deal, after it quit last month, are “advanced” according to preferred bidder Metrix.

LST, which was an equity partner in the Metrix consortium, quit last month, after voicing concerns about the scheme’s rising costs.

Metrix, which is led by QinetiQ and includes Laing O’Rourke, says an announcement will be made “soon” after “substantial interest” from a number of potential equity partners.

The £12bn deal includes the construction of the £1bn Defence Technical Academy. When LST pulled out it blamed “significantly increased bid costs” concerning “detailed design work”. LST had already spent £20m on bid costs on the project, which was awarded to Metrix in early 2007.

Land Securities announced the sale of Trillium last week to rival outsourcing company Telereal. However the sale is not thought to be behind LST’s withdrawal from the training programme.

A Metrix spokesman said: “Following the announcement of LST's decision to pass on its interests in the DTR programme to a new equity partner there has been substantial interest from a number of parties to replace LST’s role in the Metrix consortium.

"Discussions are advanced and Metrix soon expects to be able to announce that an agreement has been reached with one of these parties.”

Metrix said the construction of the Academy was not expected to be delayed with work still scheduled to start shortly after financial close in the summer of 2010.