- The Diego Garcia air and naval base is jointly maintained by the UK and US, although the US military are the main users
- London is seeking to cede sovereignty of the British Indian Ocean Territory despite concerns about impact to the base
- China would stand to benefit from any handover from BIOT to Mauritius, which maintains close ties with Beijing
UK-US joint venture Amentum Mitie Pacific has been awarded an $85.2m fixed price, indefinite delivery/indefinite quantity contract for base operating support services at the US Navy Support Facility at Diego Garcia.
Located, for the time being, in the British Indian Ocean Territory (BIOT), Diego Garcia is a key US/UK military base situated in the heart of the Indian Ocean. The UK Government is currently seeking to finalise a transfer of sovereignty of the territory to Mauritius and then secure the joint US/UK base on a 99-year lease.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to the US Department of Defence (DoD), announcing the contract award on 13 January, work will be performed by Amentum Mitie Pacific on site, with an expected completion by January 2034.
The maximum contract value, including the mobilisation, base period, seven option years, and six-month extension of services option, is in excess of $656m. The contract itself was competitively procured, with three offers received by the US DoD.
Controversy over Diego Garcia
The UK finds itself in a difficult position of its own making regarding Diego Garcia, as, while it is technically a UK/US base, it is the US military that operates the air base and naval support facility, accommodating nuclear submarine visits and US Air Force bombers.
The site also acts as an intelligence monitoring station in the region, as well as a space tracking node.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataHowever, in 2019 the UK was found to be in breach of international law by the United Nations, likely under pressure from China, in maintaining ownership of the archipelago, which was detached from Mauritius in 1965, itself at that time also a UK colony.
Opponents of the ceding of UK sovereignty of BIOT have pointed to security concerns should Mauritius seek to exploit the resources of the islands nearest to the Diego Garcia base.
China maintains exceedingly close diplomatic and economic ties with Mauritius, which is a major recipient of support from Beijing, receiving loans, debt write offs, with both countries signing a Free Trade Agreement in 2021.
The concern would be that China could leverage its fiscal grip over Mauritius to enable greater access to the waters and land masses close to the key US base. Should the deal go ahead, the UK would pay Mauritius to maintain the Diego Garcia base on a 99-year lease.
The UK was previously forced to give up Hong Kong in the 1990s to China at the end of London’s 99-year lease on the territory, whose democratic institutions have now been disbanded and now effectively ruled by Beijing.
