Press release

North Wales boost as prison contract is awarded to Lend Lease

Multi-million pound boost for north Wales as Prisons Minister Jeremy Wright announces that Lend Lease will build a new prison in Wrexham.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

3D view of what north Wales prison will look like

The contract proposals offer a significant benefit to the north Wales economy and by creating jobs and opportunities ties in with this government’s long term plan to build a stronger, more resilient economy. The £151 million (plus VAT) construction contract also ensures that, with other expenses, the overall project spend is set to be £212 million - substantially under the original £250 million estimate.

The proposals include approximately £50 million to be spent with small and medium enterprises (SMEs), £30 million to be spent with local businesses and 50% of the entire workforce to be recruited from the local area, including around 100 apprenticeships. Lend Lease has also proposed to offer practical help to local schools and dedicate time to meeting local needs with a community engagement manager employed.

Prisons Minister Jeremy Wright said:

We knew that a new prison in Wales was going to be a massive boost to the Welsh economy, and I’m delighted that local people are going to benefit from it.

This contract will ensure that millions of pounds are spent with SMEs, with significant levels of work for local businesses and young people – a key part of this government’s long-term plan to build a stronger economy.

This first prison for north Wales will be a significant boost to the prison estate, helping ensure taxpayers are given the best possible value while holding offenders closer to home to help prevent reoffending.

Once built the prison is estimated to create approximately 1,000 jobs and boost the regional economy by bringing in around £23 million a year. The Ministry of Justice has particularly encouraged the use of SMEs and regional businesses during the tendering process, with a special local supplier event to help companies show the potential contractors the services they can offer.

Secretary of State for Wales David Jones said:

The new prison in Wrexham will bring a huge boost to the regional economy in north Wales.

During the local supplier event in January we saw the high quality products and services on offer from local businesses vying to be a part of this important development.

I was delighted to see so many companies expressing such a strong interest in playing their part in the construction of the prison.

It was a clear demonstration that Wales has some of the very best suppliers in the UK and I look forward to seeing them benefitting directly from today’s significant announcement.

The new 2,100 place prison will be the first for north Wales and forms part of the ongoing modernisation plans that are not only creating a fit-for-purpose prison estate but reducing prison costs by £500 million during the current spending review period.   Work has already started on the site – which was previously the Firestone Tyre factory – and the prison will be fully operational by late 2017.

Notes to editors:

  1. For further information or to request an interview call the MoJ Newsdesk 020 3334 3536.
Published 30 May 2014