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Building Schools for the Future Programme: Private Finance Initiative

Volume 463: debated on Monday 3 September 2007

To ask the Secretary of State for Children, Schools and Families pursuant to the answer of 16 July 2007, Official Report, column 92W, on Building Schools for the Future (BSF): private finance initiative, how much funding from his Department's capital budget was spent on the BSF schools already built in each financial year, broken down into expenditure on newly built and refurbished schools and the seven new-build BSF schools that are under construction. (153647)

BSF schools which are complete were funded as part 5 of a “Quick Wins” initiative. Funding from the capital budget for these projects is shown in the following table.

£ million

2004-05

2005-06

2006-07

New build

4.5

10.8

0.4

Remodelled/refurbished

3.5

6.5

1.3

Total

8.0

17.3

1.7

There are currently 30 new build schools under construction. Of these, 23 are being procured through the private finance initiative scheme and so will not receive any funding until the schools open. Capital funding of £18 million was provided to authorities in 2006-07 to meet milestone payments for those conventionally funded new build schools currently under construction.

To ask the Secretary of State for Children, Schools and Families pursuant to the answer of 16 July 2007, Official Report column 92W, on Building Schools for the Future (BSF): private finance initiative (PFI), how his Department decides whether BSF schools will be procured as part of PFI schemes. (153648)

The procurement strategy for BSF projects is determined on value for money grounds. Local authorities are required to carry out a detailed options appraisal which considers different procurement and funding methods for the schools in a project using both quantitative (discounted cash flow) and qualitative analysis, in accordance with HM Treasury’s ‘Value for Money Assessment Guidance’ of November 2006.