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Private Finance Initiative: Local Government

Volume 483: debated on Tuesday 18 November 2008

To ask the Chancellor of the Exchequer what assessment has been made of the effect of the current financial situation on the viability of local authority private finance initiative projects. (236094)

Local authority private finance initiative transactions have continued to close this year but conditions in the banking market are putting some current projects under pressure. This is the result of limited liquidity in the banking market rather than the structure of the projects themselves. The Treasury is working with procuring authorities and departments to ensure that projects in the late stages of procurement are able to achieve contract close.