The private sector is moving into the fight against terrorism as British police and the military are to be offered the chance to hone their skills at a state-of-the-art weapons and tactics centre in a former underground reservoir.

The £20m independent National Firearms and Tactical Training Centre (NFTTC) to be built in Bedford will feature specialist weapons ranges and live-fire houses that can be decked out to create realistic hostage, siege and terrorism scenarios.

The privately funded 200,000 sq ft centre, due to open in January 2017, will be constructed inside the Manton Lane underground reservoir, which was built in 1935 and decommissioned by Anglia Water in the 1990s.

The facility, to be built by British private equity investment company Lou Bedford, will feature five live-fire ranges in lengths from 100 metres to 25 metres with systems provided by Action Target.

There will also be two-storey, live-fire skills houses to practise hostage rescue and terrorism scenarios, and set design systems that can imitate streets, schools, hotels and airports, as well as space for vehicle interception drills.

Andrew Young, the NFTTC’s director of marketing and a former RAF officer, said: “While the British police and military have some of the best personnel and training facilities in the world, increasing demand means that there isn’t enough capacity for all their needs. What we’re offering is a centre of excellence to bridge that gap.”

The NFTTC is being built and licensed to safety and security standards set down by the Home Office and the College of Policing. It is completely enclosed and has six-foot-thick walls.

Talks are taking place with a number of police forces and military and civilian firearms-approved agencies across the country regarding rental of the facilities.

At full capacity, the NFTTC aims to provide training from £100 per officer per day.