The Ministry of Defence has awarded the first contract under one of the Government’s biggest Public Private Partnership (PPP) projects.

The contact is the first phase of Project Aquatrine, and aims to transfer the operation and maintenance of MOD water and wastewater assets and infrastructure to private sector service providers in the Midlands, Wales and the South-West of England.

The contract has been awarded to the Brey Utilities consortium, comprising Yorkshire Water, earth Tech Engineering Ltd and KBR (Kellogg Brown and Root).

Project Aquatrine covers the whole of England, Scotland and Wales, and the decisions on the Scottish area and the North and East of England will be taken later this year.

Under the terms of the first phase, known as Package A, Brey Utilities will provide water and sewerage services to more than 1,000 MOD sites, including some of the largest defence bases such as RAF Cosford and RAF Lyneham, Army garrisons at Bordon and Larkhill, and Portsmouth Naval Base.

Defence minister Dr Lewis Moonie said: “Project Aquatrine is a great achievement for the MOD, helping us to concentrate on our core business by transferring environmental management to those in the private sector who are best placed to handle it.

“Brey Utilities’ bid represents considerable value for money compared with conventional capital procurement.

“Brey Utilities will bring specialist private sector expertise to the provision of water and wastewater services to the MOD estate.

“They have the opportunity to be innovative in how they manage the MOD’s assets and provide best value for money on behalf of the taxpayer.”

The contract will take effect from December 2003.