§ Mr. LawsTo ask the Secretary of State for Defence what his estimate is of the cost of placing the order for four new roll-on, roll-off transport ships for the Royal Navy; and if he will make a statement. [18814]
§ Mr. Hoon[holding answer 5 December 2001]: Negotiations continue to finalise a 25-year private finance initiative contract for the Department's strategic sealift with AWSR as the preferred bidder. This will cover the operation, support, maintenance, and crewing of up to six roll on/roll off ferries to be available for the Ministry of Defence (MOD) to use at varying periods of notice. It is estimated that routinely the MOD will require only four of the six vessels and when not being used by the Department they will be available to the owners, AWSR, for commercial purposes. The total value of the contract is estimated to be worth around £950 million with some 85 per cent. being spent within the UK. The cost of the ship-build element will be contained within the overall strategic sealift service contract. We hope to be in a position to complete negotiations shortly.