The core Department is currently undertaking one private finance initiative (PFI) project to provide office facilities at Brooklands Avenue, Cambridge. There are, however, a number other PFI and public private partnership (PPP) projects being undertaken by DEFRA’s sponsored bodies i.e. non-departmental public bodies (NDPBs) and public corporations. The information requested about these projects is set out in the following table. The total cost of each PFI contract reflects the sum of the unitary charge payments which are projections to the end of the contract, and are conditional on the performance of the private sector contractor. These costs include not only the repayment of the capital value of the project but also service and maintenance charges.
The Department also provides support in the form of PFI credits to allow local authorities to enter into PFI contracts to provide waste recycling and management facilities. However, as the Department itself has not entered into these contracts and they are between the local authority and the service provider, we have not provided information about these deals.
Organisation Project Assets transferred to private sector Total cost of contract Estimated cost of traditional procurement over the life of contract Environment Agency Broadland Flood Alleviation Project None Total payments estimated at £167.4 million (inc VAT) reflecting current prices and inflation for the life of the project. £155 million (inc VAT) at March1998 prices but £209 million based on indexation rates. Environment Agency Pevensey Bay Sea Defences None Total payments estimated at £35.4 million The present value of the initial contract in1998 was estimated at £15.8 million compared to its traditional procurement cost of £19.2 million. Since the coverage of the contract was extended in 2002 to include another frontage, no comparable present day cash figures are available. DEFRA Office Facilities at Brooklands Avenue, Cambridge Building and land at Brooklands Avenue. Value £28.2 million. Total payments estimated at £92.3 million Information not available. Natural England (successor to Countryside Agency) SPIRIT IT System None £1.3 million Information not available.
Organisation Project Assets transferred to private sector Total cost of contract Estimated cost of traditional procurement over the life of contract British Waterways Waterside Pub Partnership Property worth £13.9 million as at November 2006. Assets worth £2.9 million are planned to be sold in the future This PPP is a partnership agreement and does not have a priced contract in place. No comparison made with traditional procurement costs. British Waterways Wood Wharf (London) development None at present but assets worth £57.2 million are planned to be sold in the future. As above As above British Waterways ISIS (development of river and canal side property) Property worth £15.4 million as at November 2006. Assets worth £52.2 million are planned to be sold in the future. As above As above