To ask the Chancellor of the Exchequer what assumptions have been made on the net present value of public-private partnership projects for the purposes of preparing the pre-Budget report for 2008. (241355)

HM Treasury uses departmental returns as the basis for its statistics on public-private partnerships published at each pre-Budget and Budget report. These are in turn based on HM Treasury's Green Book, which can be found on the Treasury's website at

http://www.hm-treasury.gov.uk/data_greenbook_index.htm

and which sets out guidance for the calculation of net present value.

To ask the Chancellor of the Exchequer what assumptions are made by his Department when estimating the effects of inflation on future public-private partnership costs. (241356)

HM Treasury uses departmental returns as the basis for its statistics on public-private partnerships published at each pre-Budget and Budget report.

Departments are required to factor the inflation assumptions set out in their PPP contracts into their estimates of future unitary charge payments.

To ask the Chancellor of the Exchequer what discount rate of capital is used when determining the net present value of public-private partnership projects; and what risk premium is included in that rate. (241357)

HM Treasury's Green Book, which can be found on the Treasury's website at

http://www.hm-treasury.gov.uk/data_greenbook_index.htm

sets out guidance for the calculation of net present value.