The UK’s Ministry of Defence (MoD) has awarded a £256 million facilities management contract to Mitie Defence Limited for the provision of key services for the UK Armed Forces serving in Cyprus. The contract, which was awarded by the Defence Infrastructure Organisation (DIO), will provide maintenance work, repairs, servicing, and hard facilities management to the MoD’s estate in Cyprus.

Covering every part of the MoD estate in Cyprus, this will include RAF Akrotiri, Episkopi, Dhekelia, Ayios, Nikolias, Troodos, Bloodhound Camp, and Radio Sonde. It will come into force in the autumn and will include Cypriot companies within the supply chain.

The contract is for an initial period of seven years and aims to be more flexible and responsive to the needs of service personnel and staff in Cyprus. It has been designed to promote more efficient processes, ensuring that the UK Armed Forces in Cyprus have the necessary support to carry out their duties effectively.

In May 2022, Mitie also provided key services for the UK Armed Forces in Gibraltar. The contract was also awarded by the Defence Infrastructure Organisation (DIO) under the OPC programme.

The next contract, which will be for hard facilities management in Germany and wider Europe, is set to be awarded next month. The Cyprus Soft Facilities Management contract award is anticipated for summer 2023, while the final contract, for the South Atlantic Islands, is scheduled for summer 2024.

According to GlobalData’s “The Global Military Infrastructure and Logistics Market 2020-2030”, report, it claims that Europe is estimated to account for the second largest share of the global facilities management market over the forecast period with countries such as the UK, Germany, France and Russia are allocating substantial amounts from its defence budget.

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With Facilities management segment anticipated to witness second fastest growth rate during the forecast period with a CAGR of 2.81%. Facilities Management segment is anticipated to witness fastest growth in the UK, South Korea, Canada, Iraq, and the UAE among others.

Source: GlobalData Intelligence

According to the DIO, these contracts will enable the MoD to be more agile in its approach to facilities management, while providing high-quality services to support the UK’s Armed Forces wherever they are stationed.

DIO’s Chief Operating Officer David Brewer said: “DIO is committed to supporting people across the Armed Forces who depend on us to provide facilities and essential services which allow them to work safely and securely.

This important milestone follows years of hard work to design a contract that builds on the successes of existing hard facilities management arrangements while adding additional services and improvements to improve the quality of life for our Armed Forces in Cyprus.”