Four in the running for largest-ever PFI project

Four consortia remain on the shortlist for STEPS, the £2bn Inland Revenue/Customs & Excise PFI project. Outline proposals have now been submitted, due to lead to a cut in numbers to a final three - with the contract winner expected to be announced late next spring.

With a project value of this size, the contenders are predictably heavyweight:

Mapeley - bringing together Bank of America, DTZ, Dalkia, Symonds and EC Harris, amongst others
Newlands - including WS Atkins, Balfour Beatty, Gardner Merchant and the Royal Bank of Scotland
Servus - Nomura, Serco, Grosvenor Estate, Jones Lang Lasalle and others
Trillium - Goldman Sachs, George S Hall, MITIE, Sutcliffe and others.

A fifth consortium, involving financial house CIBC World Markets, surveyor CB Hillier Parker and project manager Mace, dropped out before the latest deadline. Mace is pitching for a number of other PFI projects and has already secured some significant wins. But a spokesman confirmed that the process is always under review since the cost of bidding can be quite high.

It has been reported that STEPS costs so far have been well into seven figures for each team. Rewards promise to be substantial, though. STEPS will transfer about 750 properties into the hands of the winner, along with a 20-year management contract.

Elliott Chase