Support services and construction company Carillion, in joint venture with Babcock, has secured a 30-year, £3 billion contract for the provision of training and training support, infrastructure and services at the Royal School of Military Engineering (RSME) in Medway, Kent and Minley, Hampshire.

The joint venture, Holdfast, will deliver some £300 million of capital works, for both new and refurbished soldier accommodation, including around 1,700 soldier bed spaces; training enhancements; more efficient use of the training estate; lower running costs and greatly improved facilities as well as the introduction of retail, catering and leisure to deliver a family-friendly environment. This will also enable about 300 military personnel to return to the Field Army from the Training Division.

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The joint venture partners will invest a total of £17.4 million of equity in this project, with Carillion investing £5.5 million.

Holdfast is now entering a lead-in period with services to be delivered by Babcock due to start in January 2009. The £300 million capital works programme, involving construction and refurbishment, will be carried out by Carillion over the first seven years of the contract.

Under the contract, the responsibility for training delivery will be shared between the RSME and Holdfast, with the focus on the delivery of relevant training in an efficient and effective way.

(CD/JM)