Skip to main content

Private Finance Initiative Projects

Volume 451: debated on Wednesday 1 November 2006

To ask the Secretary of State for Education and Skills how much has been spent by his Department on Private Finance Initiative projects postponed pending further consideration or stopped in the last 12 months. (96806)

The Department for Education and Skills does not itself undertake Private Finance Initiative (PFI) projects. PFI projects for the provision of schools are delivered through contracts between local authorities and private sector contractors.

There are currently 103 such projects with signed contracts covering over 800 schools. A list containing the names, locations and other details of these projects can be accessed at www.teachernet.gov.uk/pfi and copies have been placed in the Commons Library.

One schools PFI project has been postponed or stopped in the last 12 months but only in the sense of no longer being funded through PFI. The project itself (in the London borough of Hounslow) is proceeding using conventional capital. Because of a lack of competition in the bidding process it was agreed between the Department and the local authority that a value for money outcome was unlikely to be achieved through PFI in this particular case. This change in the funding method did not in itself involve any cost to the Department.