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Private Finance Initiative: Government Assistance

Volume 497: debated on Tuesday 13 October 2009

To ask the Chancellor of the Exchequer how much public money has been spent to assist companies with private finance initiative contracts which have been adversely affected by the credit crunch; how much such expenditure has been committed but not spent; which companies (a) have been assisted and (b) are planned to be assisted in this way; and what his estimate is of the likely total public expenditure for this purpose. (292137)

No money has been spent assisting companies with private finance contracts and there are no plans to do so. In March 2009 the Treasury established its Infrastructure Financing Unit (TIFU) as a temporary and reversible initiative, which can provide loans on market terms to PFI projects struggling to reach financial close due to problems in the debt market. TIFU does not provide direct financial support to companies operating PFI contracts but lends at a commercial rate to PFI projects in procurement.