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Private Finance Initiative

Volume 324: debated on Tuesday 26 January 1999

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To ask the Secretary of State for Scotland if he will list the projects currently being considered for PFI funding in Scotland, indicating the number of contracts with performance bonuses as well as penalties built in; which projects are build, own and operate; and if the service costs for PFI projects can be broken down into capital cost and service cost. [66000]

[holding answer 20 January 1999]: The information requested on projects under consideration for PFI funding and on signed projects which are build, own and operate schemes is set out in the tables.Precise information on whether a scheme under consideration will be build, own and operate depends on the outcome of negotiations. No contract sponsored by The Scottish Office has a performance bonus regime. Payment mechanisms vary on the basis of usage, availability and performance. In general, payments commence on the delivery of services, with deductions thereafter for non-availability or poor performance. A feature of PFI projects is that they are not separable into components, and so service costs are not a separable element of the overall charge. From 1 July 1999 this will be a matter for the Scottish Parliament.

Table 1—PFI projects currently being considered for PFI funding in Scotland
Project nameProcuring agency
Police Force Training Centre, East KilbrideStrathclyde Police
Office AccommodationPerth and Kinross Council
Rapid Transport System (CERT)City of Edinburgh Council
Balfron SchoolStirling Council
Dumfries and Galloway Waste Management/Recycling ProjectDumfries and Galloway Council
Mearns Primary and St. Ninian's High SchoolEast Renfrewshire Council
Glasgow Schools ProjectGlasgow Council
Argyll and Bute Waste Management ProjectArgyll and Bute Council
Glasgow Energy InitiativeGlasgow City Council
Highlands Schools ProjectHighland Council
Edinburgh Schools ProjectEdinburgh Council
Fife Schools ProjectFife Council
Aberdeenshire Schools ProjectAberdeenshire Council
A701/A702 upgradingMidlothian Council
A92 upgradingAngus Council
Glasgow Southern Orbital RoadEast Renfrewshire Council
West Lothian Schools ProjectWest Lothian Council
Larkhall-Milngavie rail routeStrathclyde PTE
Aberdeen, Stonehaven, Fraserburgh and Peterhead Sewage and Sludge Treatment North of Scotland Water Authority
Daldowie/Sheifldhall Sludge Treatment CentresWest of Scotland Water Authority
Levenmouth Purification SchemeEast of Scotland Water Authority
Tay ProjectsNorth of Scotland Water Authority
Dalmuir Sewage TreatmentWest of Scotland Water Authority
Meadowhead (Irvine), Ayr, Stevenston and Inverclyde Sewage TreatmentWest of Scotland Water Authority
Moray Coast and Montrose Wastewater ProjectNorth of Scotland Water Authority
Almond Valley, Seafield and Esk Valley Sewage SchemeEast of Scotland Water Authority
Table 2—Signed build, own and operate PFI projects in Scotland
Project nameProcuring agency
Inverness Main Drainage/Fort William Sewage TreatmentNorth of Scotland Water Authority
Stirling FE CentreFalkirk College
Stonehaven Community HospitalGrampian Health Board
Hospital Information SystemYorkhill Hospitals NHS Trust Glasgow
Hospital Information SystemPerth and Kinross Healthcare NHS Trust
Hospital Information SystemLaw Hospital NHS Trust
Ferryfield HouseEdinburgh Healthcare NHS Trust
Mearnskirk Hospital Geriatric BedsVictoria Infirmary NHS Trust
New Royal Infirmary of EdinburghRIE NHS Trust
Law HospitalLaw Hospital NHS Trust
Hairmyres HospitalHairmyres Hospital NHS Trust
Multistorey car park/car parking facilitiesDundee Teaching Hospitals NHS Trust

Notes:

Tables 1 and 2 do not contain those projects which are within Trust and Health Board delegated limits.

Table 2 excludes projects sponsored by Local Authorities.

To ask the Secretary of State for Scotland if he will list the disadvantages which are assessed in respect of potential PFI projects in the National Health Service. [65835]

The current hospital building programme is the biggest in the history of the NHS. It is funded by a mixture of public and private finance. PFI funding is used when projects are affordable, prove value for money, offer improved healthcare and provide significant advantages for patients. From 1 July 1999 this will be a matter for the Scottish Parliament.