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Departments: Private Finance Initiative

Volume 460: debated on Tuesday 22 May 2007

To ask the Secretary of State for Foreign and Commonwealth Affairs what value of annual private finance initiative payments by her Department was classified as (a) identifiable and (b) non-identifiable in each of the last five years, broken down by project. (137798)

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.

To ask the Secretary of State for Foreign and Commonwealth Affairs what value of annual private finance initiative (PFI) payments were (a) to repay capital and (b) expenditure on other parts of each PFI contract, broken down by project in each of the last five years. (137799)

The following is an analysis of the Foreign and Commonwealth Office’s payments against private finance initiative contracts in the years indicated:

£000

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.