§ Mr. SpellarTo ask the Secretary of State for Northern Ireland which projects have been selected by the Water Executive for the private finance initiative; what is the estimated cost of these projects; when they were due to go out to tender; and what is the estimated delay caused by these projects being included in the private finance initiative. [32823]
§ Mr. MossThe Water Executive has a major capital construction programme designed to ensure compliance with national standards, incorporating those of the EC, over the next 10 years. This programme has significantly increased the executive's capital demands and it is appropriate that we explore the use of private finance in this context. It is a normal method of funding infrastructure projects internationally, as well as in the United Kingdom, and I am anxious that the potential for446W its application to the Water Executive's capital programme should be tested.
Government recognise that using private finance must provide genuine value for money. I have therefore agreed that, as a first step the Water Executive should select two pilot schemes to test the viability of the private sector financing, building, owning and operating such facilities on a long-term basis. In order to assist with this work a consortium comprising Mott MacDonald Ltd., and NatWest Markets have been appointed to act as a manager and financial advisor of the pilot scheme.
I am presently considering the final selection of the schemes to be included in the pilot project. They will probably have a combined capital value of over £20 million and I will announce the details in due course.
I do not anticipate that the private finance initiative will cause any significant delays in these schemes.