To ask the Secretary of State for Transport by what total amount private finance initiative projects for which his Department is responsible which went over budget did so in each of the last five years; and if he will make a statement. (83650)

A key aspect of the private finance initiative (PFI) is risk transfer on projects going over budget. This means overruns on PFI projects that the Department is responsible for will normally be carried by the private sector provider and not the Department for Transport.

Unitary charge payments do not commence until the service is operational. If a private sector budget overrun influences the service standard provided, PFI contract terms include a right for the public sector to make performance deductions from the unitary charge payment made to the private sector provider.