§ Matthew TaylorTo ask the Secretary of State for Transport, Local Government and the Regions what central monitoring his Department undertakes of value for money obtained in private finance initiative projects; and if he will make a statement. [4461]
§ Dr. WhiteheadThe value for money of private finance initiative contracts must be demonstrated against a public sector comparator, representing the costs associated with providing the same service through a conventional procurement, before approval will be given for signature of a contract. The Department ensures that the value for money benefits of a PFI contract are delivered across the life of the contract through appropriate clauses in the payment mechanism. Performance of contracts is monitored against the individual requirements of the payment mechanisms which provide incentives for the delivery of quality services.