All payments made under private finance initiative (PFI) are identifiable. Prior to a PFI contract being signed the profile of unitary charge payments is agreed between the contractor and the public sector, subject to the operation of the payment mechanism.
The following is an analysis of the Foreign and Commonwealth Office’s payments against private finance initiative contracts in the years indicated:
Global Telecommunications Berlin Embassy Service and interest costs Berlin Embassy Capital repayments 2005-06 26,924 5,711 342 2004-05 27,634 7,234 370 2003-04 22,146 4,477 400 2002-03 20,674 3,843 434 2001-02 15,991 3,800 —
The Global telecommunications payments are for a contract with Global Crossing for the provision of a world-wide telecommunications network for a term of 10 years from 10 May 2000, which is treated as an operating lease.
The Berlin Embassy payments are for a contract with Arteos for the building, operation and maintenance of our Embassy in Berlin, the value of which has been capitalised in our balance sheet.