§ Ms HarmanTo ask the Secretary of State for Scotland what is the payback period for the private finance initiative element in respect of Stonehaven hospital. [32041]
§ Lord James Douglas-Hamilton[holding answer 10 June 1996]: Grampian health board has yet to decide on the preferred bidder for the Stonehaven scheme. When a contract is awarded, it will be for an initial period of 10 years and will be for the provision by the successful tenderer of a range of services, which will be provided in new hospital premises, not for the construction of the hospital itself. The winning bidder will need to demonstrate that it provides the best value for money compared to other bids and against a public sector comparator. Therefore, it will be for the private sector to consider the payback period for the new facilities that it provides in the context of its bids, which will be expressed in terms of an overall price covering service provision, overheads and any capital elements.