Key Point
- The UK's experience could prove useful to the Australian
Government which is looking at potential areas where Public Private
Partnerships could be applied
AirTanker Limited has signed a 27-year contract with the
UK's Ministry of Defence for the provision of an advanced Air
to Air Refuelling and Air Transport capability for the Royal Air
Force.
This £2.485 billion deal, the world's largest ever
Defence Private Finance Initiative, closed on 27 March 2008 some
four years after AirTanker was named preferred bidder. The total
through-life cost of the FSTA project is estimated at £13
billion.
The Australian Government is currently looking at potential
areas where Public Private Partnerships could be applied in
Australia. Thus the details of this transaction will be of interest
both to Government and the private sector. It is to be hoped
however that the inordinately long length of time to reach close
after preferment is not repeated in any Australian
