Serco signs contract for Belmarsh West prison valued at £415m
Date: 05 Jul 2010
Serco Group plc (Serco), the international service company, announces that its consortium has signed a contract with the Ministry of Justice to provide and operate a new prison at Belmarsh West, London. The contract has a value to Serco of approximately £415m, and will run for 26½ years.
Serco had previously announced its selection, in June 2009, as the preferred bidder to provide and operate two new prisons at Belmarsh West, London and Maghull, Liverpool. It is intended that the contract to provide and operate the prison at Maghull will be signed later this year.
Serco will operate Belmarsh West, a local prison, under a Design, Construct, Manage and Finance contract. The prison, which will be built to Category B standards by Serco's construction partner Skanska, will accommodate 900 adult male prisoners. Construction works will begin immediately, with completion expected in the first half of 2012. Equity and debt finance has been secured from third parties.
This is the first prison contract to be awarded in the UK to an alliance of the private and voluntary sectors. The prison is designed to be highly efficient and, as a local prison with a high remand population, Serco's focus will be to minimise the dislocation that short-term imprisonment can cause. Building on its innovative and successful alliance with leading voluntary sector partners, Turning Point and Catch22, Serco will deploy tried and tested methodologies and best-in-class technology to create an environment that most effectively and efficiently prepares those in our care for release. In conjunction with other providers Serco will also support the effective delivery of prison healthcare and other services, to ensure a safe, secure and decent environment for those in our care.
Christopher Hyman, Chief Executive of Serco Group plc, said:
"Serco has a strong track record internationally of providing high quality service in the management of prisons, focused on cost effective care and successful rehabilitation. I am delighted that this high level of performance and innovation has been recognised with the award of this contract for Belmarsh West by the Ministry of Justice. Our consortium comprises some outstanding delivery partners, including Skanska, with whom we have worked since 1994 and our third sector partners Catch22 and Turning Point who are renowned for their rehabilitation and resettlement solutions."
Design images of Belmarsh West are available on request.
For further information please contact Serco:
T +44 (0) 1256 745 900
Charles King, Head of Investor Relations
Dominic Cheetham, Director of Corporate Communications
Marcus De Ville, Head of Media Relations
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