HC Deb 22 April 2002 vol 384 cc49-50W
Mr. Bercow

To ask the Secretary of State for Transport, Local Government and the Regions what estimate he has made of the total savings of the Private Finance Initiative contract for the(a) Ml/A1 Link Road, (b) A 1 (M), (c) A30/35, (d)M40, (e) A417/419, (f) A19, (g) A50, (h) A69 and (i) second Severn Crossing by comparison with a non-Private Finance Initiative alternative. [49271]

Mr. Jamieson

The following figures show the savings estimated at the time of contract award.

£ million
Project Public sector comparator Winning DBFO bid Estimated saving
M1-A1 344 232 112
A1(M) 204 154 50
A419/A417 123 112 11
A69 57 62 (5)
M40 276 182 94
A19 177 136 41
A50 77 67 10
A30/A35 149 148 1
Total 1,407 1,093 314


Figures are net present values calculated at an 8 per cent. real discount rate. This was the rate used for assessing road projects at the time of contract award.

I understand that the publicly and privately financed options for the second Severn Crossing were evenly matched.