To ask the Secretary of State for Health what steps she has taken to fund the planned expansion of Colchester general hospital; and if she will make a statement. (114593)

This is a local matter, which falls to national health service providers locally. However, I am advised that despite the Private Finance Initiative process stopping in June 2006, Essex Rivers remains committed to centralise core services at Colchester general hospital. The trust’s intention is to achieve the same strategic ends over a longer period using other avenues for finance and taking advantage of opportunities as they arise. This is the central theme of the trust’s investment strategy, launched in September 2006, for which consultation ended on 22 December 2006.

A strategic capital solution of around £40 million to £50 million is being developed. Early approval by the North East Essex primary care trust and NHS East of England boards will be sought this financial year, which will deliver a new five-year programme comprising 14 projects which will achieve the outcomes required, assuming that the funding regime and activity are broadly in line with the current assumptions.

To ask the Secretary of State for Health how much compensation has (a) been paid and (b) will be paid to the private sector consortium involved in the former Private Finance Initiative project at Colchester general hospital; from which national health service budget or budgets the compensation will be paid; and if she will make a statement. (114594)

Forensic accountants appointed by the Department have completed their work with Essex Rivers national health service trust to verify the reasonableness of the claim submitted by AMEC and its consortium partners in respect of bidding costs incurred on the cancelled private finance initiative scheme. Ministers are now considering the accountants’ report and how any such compensation payments should be administered.