Wragge & Co LLP has advised the Ministry of Defence on a complex £1.2 billion PFI deal. The MoD has agreed a 15-year Future Provision of Marine Services PFI contract with Serco Denholm Marine Services Limited for the provision of marine services in the Royal Navy.

The contract covers the Royal Navy's three UK ports – Clyde, Devonport and Portsmouth - domestic and international waters. It includes services currently being provided by Serco Denholm and the Royal Maritime Auxiliary Service. Under the agreement, the RMAS workforce will transfer to Serco Denholm under Transfer of Undertakings Protection of Employment regulations.

PFI partner and defence expert Michael Whitehouse led the Wragge & Co team, assisted by Simon Chappel, Nicholas Foulkes, Kate McKenna, Georgina Spearing and Juliette Challenger. Patrick Brodie and Kelly Chapman advised on employment law issues, Lee McBride provided property law advice, while banking and finance expert Julian Pallett and pensions specialist Victoria Leybourn also advised.

Michael Whitehouse said: "This fiendishly complicated project required creative thinking and a strong team effort. We have broken new ground, testing the boundaries of traditional PFI thinking to include security arrangements and asset replacement alongside service provision. With complex employment, pensions and property issues added to the mix, it is a great example of the high-calibre PFI work handled by Wragge & Co."

Ricky Anderson, project manager for the MoD, said: "FPMS is a complex contract which will deliver Marine Services to the MoD worldwide over the next 15 years. Throughout the project MoD has benefited from the wealth of PFI experience Wragge & Co has brought to the negotiations, together with the diversity of other expertise it was able to provide, often at short notice. We would like to thank Wragge & Co for its contributions as part of the overall FPMS Project Team."

Wragge & Co has an ongoing relationship with the MoD and in 2005 was re-appointed to its panel of preferred legal advisers. Other MoD projects include the £3.9 billion aircraft carrier alliance project and a £1.15 billion project for the redevelopment, management and operation of facilities at the Northwood Headquarters site.

Linklaters advised Serco Denholm while Freshfields acted for funder Lloyds TSB Bank plc.

Wragge & Co's PFI team is one of the UK's leading projects practices, advising many of the main players in PFI, PPP and international projects. PFI specialists are part of a cross-firm aerospace and defence team. This team works alongside private and public sector clients, providing high-quality legal advice with a strong sector focus.

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For further information about this press release, contact Kathryn Hobbs on +44 (0)121 213 2397, Alexa Highfield on +44 (0)121 213 2396 or Matthew Purcell on +44 (0)121 213 2360

This press release may contain information of general interest about current legal issues, but does not give legal advice.