MoD remains committed to private finance

The UK Ministry of Defence (MoD) is still considering private finance options to support its estate optimisation programme, its latest plans have confirmed.

The Defence Infrastructure Organisation’s new procurement plan outlines a programme of major projects over the next five financial years.

Included as part of this is an update on its Defence Estate Optimisation Programme, which aims to contribute to a 30% reduction in the MoD built estate by 2040, as well as releasing surplus land to support wider government housing targets.

The document said that projects will be delivered “through a range of mechanisms” and confirmed that “consideration is being given to possible private finance opportunities”.

It added: “The key principles are to select the most appropriate route for the individual requirements and to ensure that the market is engaged and able to provide competitive bids.”

The MoD had previously been considering using PF2 to support its plans, but will now need to find other financing approaches following Chancellor Philip Hammond’s decision to scrap the model.