The deal is one of the first to use the new ‘market value’ compensation provisions which now form part of the Treasury Taskforce standard terms and conditions for PFI contracts.
The new Foundation College will be situated in Harrogate and aims to attract and recruit men and women in order to assist in providing an additional 3,300 personnel for the regular army under the Manning the Army initiatives.
Defence Training, a joint venture between Jarvis Projects and Halifax, will provide a range of services over a 30-year concession period including facilities management, library services, catering and vocational education.
The project has a development cost of £82.6m and a lifetime cost of £444m.
Nigel Middleton, Head of PFI at PricewaterhouseCoopers, said: ‘This is our first PFI completion of the year, and represents a natural successor to our advice to the MoD on the Joint Services Staff College PFI scheme in 1998.
This deal posed a number of funding challenges, particularly involving the development of temporary facilities.’