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Private Finance Initiative Projects

Volume 449: debated on Wednesday 19 July 2006

To ask the Secretary of State for Health what percentage of private finance initiative projects for which her Department is responsible has been completed (a) over budget and (b) late in each of the last five years. (79612)

Information on completed private finance initiative (PFI) projects which have gone over budget or opened late is not routinely collected centrally. To provide such information for each of the past five years would incur disproportionate costs.

A key aspect of PFI is the transfer of risk of projects going over budget. Therefore, any cost overruns will be borne by the private sector provider, not the public sector. The private sector is only paid once the facility is built and operational to the agreed standard and is subject to penalties and deductions if services falls below agreed standard.