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Departments: Private Finance Initiative

Volume 462: debated on Wednesday 27 June 2007

To ask the Secretary of State for Transport what the value is of the unitary payments of each private finance initiative scheme overseen by his Department over the lifetime of the contract expressed in 2007-08 prices and discounted to present value. (145871)

HM Treasury website provides updated details (on a six-monthly basis) of unitary payments on PFI projects overseen by the Department for Transport. This information is available at:

The unitary payments are based on outturn prices. On average, the appropriate real discount rate for deriving the present value would be 3.5 per cent., as set out in the Treasury Green Book.

The forecasts of future payments are subject to the performance of the private sector contractors.

The unitary payments represent repayments for the capital value (sum of the capital spend) of the project and will also frequently include inflation, service provision, capital repayments and major refurbishments.