The DTR project intended to combine the technical and engineering training for the Royal Navy, Army and Royal Air Force on a single site at St Athan in South Wales.
In a written ministerial statement to Parliament today, Dr Fox said:
The Metrix Consortium was appointed as preferred bidder in January 2007 subject to it developing an affordable and value for money contract proposal.
Given the significance of this project and the opportunity to provide a world-class training facility, the Ministry of Defence has worked tirelessly to deliver this project.
However, it is now clear that Metrix cannot deliver an affordable, commercially-robust proposal within the prescribed period and it has therefore been necessary to terminate the DTR procurement and Metrix’s appointment as preferred bidder.
Technical training, collocated on as few sites as possible, remains in our view the best solution for our Armed Forces. Equally, St Athan was previously chosen as the best location on which to collocate that training for good reasons, and we still hope to base our future defence training solution there.
We will however now carry out some work before finalising the best way ahead; including to confirm both our training and estates requirement, and the best way to structure the solution that will meet them.
To ensure momentum is not lost, work on the alternative options will begin as soon as possible and we hope to be able to announce our future plans in the spring.
Training will continue to be delivered at current training locations as it would have done under the original PFI (Private Finance Initiative) proposal. These sites are: Arborfield, Blandford, Bordon, Cosford, Cranwell, Digby, Fareham (Collingwood), Gosport (Sultan) and St Athan.