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Procurement Projects

Volume 459: debated on Friday 20 April 2007

To ask the Secretary of State for Health what the 20 largest procurement projects initiated by her Department since May 1997 have been; what the (a) original budget, (b) cost to date and (c) consultancy fees have been; and what the final cost was of each project which has been completed. (106599)

The information requested is not collected in the form requested. However, the Department does have details of the 20 largest private finance initiative and information technology (IT) procurement projects since 1997. For the national programme for IT the lifetime contract value is £6,202.5 million and the expenditure up to 31 December 2006 was £1,001.5 million.

The following table provides details of the 19 largest private finance initiative (PFI) projects.

Commissioning body

Operational status1

Total capital value (£ million)

Estimated total unitary payments to end of contract (£000)

Consultancy fees (£000)

Hard facilities management (FM) only2

Barts and the London NHS Trust

Under construction

1,000

5,071.9

University Hospital Birmingham NHS Trust

Under construction

627

2,549.4

Y

University College London Hospitals NHS Trust

Open

422

2,014.2

Central Manchester and Manchester Children's University Hospitals NHS Trust

Under construction

420

3,224.5

16,196

University Hospitals Coventry and Warwickshire NHS Trust

Open

379

3,090.0

4,775

Mid Yorkshire Hospitals NHS Trust

In procurement

343

St Helens and Knowsley Hospitals NHS Trust

Under construction

338

1,747.6

Derby Hospitals NHS Trust

Under construction

312

2,172.4

6,712

Newcastle upon Tyne Hospitals NHS Trust

Under construction

299

1,132.8

5,962

Y

Sherwood Forest Hospitals NHS Trust

Under construction

296

1,746.7

Peterborough and Stamford Hospitals NHS Trust

In procurement

282

University Hospital of North Staffordshire NHS Trust

In procurement

272

Leeds Teaching Hospitals NHS Trust

Under construction

265

891.4

5,138

Y

Barking, Havering and Redbridge NHS Trust

Open

238

1,675.6

7,610

Maidstone and Tunbridge Wells NHS Trust

In procurement

225

Portsmouth Hospitals NHS Trust

Under construction

193

1,654.9

Salford Royal Hospitals NHS Trust

In procurement

190

Norfolk and Norwich Health Care NHS Trust

Open

158

1,726.2

3,497

1 Unitary payments only start once the facility is operational.

2 Most schemes involve the private sector contractor providing both soft (cleaning, catering etc) and hard (building maintenance) FM services over the lifetime of the contract. Those marked as hard FM only in this column subsequently have lower unitary payments.

Notes:

1. The figures for the unitary payments in column 4 are expressed in nominal terms—i.e. the Department has applied a deflator (RPI—the one normally used in contracts) to the baseline figure submitted to it by the Trust or PCT concerned. Figures will therefore vary as a result of changes to RPI.

2.Unitary payments may fluctuate both up and down as a result of adjustments made relating to the performance of the contractor, additional services requested by the trust and the effect of refinancing.

3.For all schemes the contract length is assumed to be 30 years, the standard length introduced under the Standard Form Contract in 1999.

4.Consultancy Fees: Information on consultancy fees incurred in reaching financial close (i.e. construction in the table) was centrally collected for monitoring purposes for the majority of PFI schemes up to 2005. To collect information on the remaining schemes would incur disproportionate costs.

5.The Department submits details on original budgets and cost increases for PFI schemes each year for the Health Select Committee. This information can be found on their website at:

www.parliament.uk/parliamentary_committees/health_committee/health_committee_reports_and_publications.cfm