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Departmental Private Finance Initiative

Volume 485: debated on Wednesday 10 December 2008

To ask the Secretary of State for Health how much his Department spent on cancelled private finance initiative projects since 1997; what the project was in each case; and on what date each such project was cancelled. (241339)

Since 1997 the Department has agreed compensation payments in respect of abortive bidding costs at two private finance initiative (PFI) schemes, either as a direct result of a cancellation or at a scheme which later went on to be cancelled. Details of the payments are:

£7.3 million in respect of the Essex Rivers Healthcare NHS Trust PFI scheme cancelled in June 2006; the Department paid the full amount directly to the bidders in March 2007; and

£9.1 million in respect of abortive costs resulting from the decision of the Department's PFI review in August 2006 to reduce the scope of the University of Leicester Hospitals NHS Trust scheme. 80 per cent. of the settlement—£7.2 million—was met by the Department and paid to the trust for disbursement via an adjustment to the local primary care trusts (PCTs) revenue allocations in May 2007. The trust contributed £2.1 million. The scheme was subsequently cancelled in July 2007.

To ask the Secretary of State for Health what the capital value is of each private finance initiative scheme overseen by his Department which has reached financial close; and, for each such scheme, (a) over what period repayments will take place and (b) what the cost of repayment will be expressed in (i) real and (ii) cash terms. (241340)