PREFERRED BIDDER FOR MINISTRY OF DEFENCE ESTATE PROJECT

The following is the text of an announcement issued this morning by the Ministry of Defence, confirming that a consortium comprising VINCI PLC and St. Modwen Properties PLC has been selected as preferred bidder for Project MoDEL

PREFERRED BIDDER ANNOUNCED FOR MOD ESTATE PROJECT IN LONDON

The selection of a consortium of VINCI plc and St Modwen Properties plc as Preferred Bidder for Project MoDEL (MoD Estate in London) was announced today by Defence Minister Don Touhig.

Defence Estates, working with English Partnerships, the ODPM’s national regeneration agency, have pioneered joint working with the other Government Departments, Local Authorities, the GLA and other Strategic Governmental Bodies to ensure every effort is made to maximise the potential that this rare opportunity presents for London. Negotiations will now take place with the Preferred Bidder with the aim of awarding a contract in July 2006. Project MoDEL will initially invest over £150 million in the re- development of RAF Northolt to create MoD‘s first integrated core site in London providing Service Personnel with brand new living, working and messing accommodation plus sports, social, health and welfare facilities.

Mr Touhig said:
“I am delighted that, following an intense competition, VINCI / St Modwen has been selected as Project MoDEL’s Preferred Bidder. The way is now clear to move forward to awarding a contract, so we can deliver a 21st Century Defence estate that will make a real difference to the quality of life for all our service men and women. The Project is also an excellent example of close working across Government Departments and local authorities in London as part of the Sustainable Communities programme.”

Margaret Ford, Chairman of English Partnerships, said:
"We have been working closely with Defence Estates over the future of its surplus sites and how they can best be used to contribute to the delivery of new and sustainable communities. The appointment of the preferred bidder is a major step in bringing back into productive use some key development sites and we look forward to continuing our working relationship with Defence Estates and now with VINCI/St Modwen."

Bill Oliver, Chief Executive of St. Modwen Properties plc and David Bowler, Director of VINCI plc said:
“VINCI plc and St. Modwen are extremely pleased to have been selected as Preferred Bidder for this important project. We look forward to continuing our relationship with Defence Estates to reach contract award in July 2006, and to then working in partnership with all the stakeholders to bring forward the benefits identified for RAF Northolt and the regeneration of the six sites released from the London Estate”.

Project MoDEL’s Contract Award is scheduled for July 2006 after which the appointed Prime Plus Contractor will fund and project manage the delivery of the construction requirements, primarily at RAF Northolt, the relocation of units, and the disposal of sites rendered surplus through the consolidation activity.

Consolidation of the London Estate will lead to the release of over 250 acres of land for redevelopment, on six sites, as listed below:

1. RAF Uxbridge
2. RAF Bentley Priory
3. RAF Eastcote
4. RAF West Ruislip
5. Inglis Barracks, Mill Hill
6. Victoria House Woolwich

The receipts from these sites will be directly recycled into the development of RAF Northolt.

Notes to Editors
1. Project MoDEL aims to deliver a MoD Estate for the 21st Century by consolidating the facilities occupied by the MoD onto fit-for-purpose sites, to improve efficiency, reduce running costs and consolidate resources.

2. Project MoDEL is consistent with the delivery of the MoD Estate Strategy launched by the Secretary of State for Defence in June 2000 and re-launched on 21 March 2006. It is anticipated that the Project will secure significant savings in estate related operational costs.

3. RAF Eastcote and RAF Ruislip are to be released as part of the United States Visiting Forces (USVF) rationalization.

4. RAF Northolt will become London’s first integrated core site benefiting from over £150 million of investment. The site will eventually house around 40 units from all three services and benefit from brand new living, working and messing accommodation plus sports, social, health and welfare facilities.

5. The selection process for a Prime Plus Contractor consisted of several stages, the first being to invite expressions of interest, followed by pre-qualification, then an invitation to submit outline proposals (ISOP), following which the issue of an invitation to negotiate (ITN). Factors taken into account when selecting a Prime Plus Contractor include project management capability, technical competence, financial standing and supply chain arrangements. A Prime Plus Contractor has overall responsibility for the management and delivery of a project to meet the required specification efficiently, economically and to time. Responsibilities include sub-contractor selection and management, design co-ordination, planning, cost control and enabling the client to effectively oversee the project.

6. English Partnerships is the government’s national regeneration agency. Its’ aim is to deliver high quality, sustainable growth in England, particularly through identifying and ensuring that best use is made of surplus public sector land. English Partnerships has and will continue to provide Defence Estates and its preferred bidder with advice on sustainable development, masterplanning, design and other specialist inputs. For further information see www.englishpartnerships.co.uk