HC Deb 23 May 2002 vol 386 cc507-8W
Mr. Burstow

To ask the Secretary of State for Transport, Local Government and the Regions what advice he provides to local authorities on developing their outline business case for submission in bidding rounds for PFI housing schemes. [57928]

Ms Keeble

The Department offers advice to local authorities at each stage of the housing private finance initiative (PFI) process. At the bidding stage the Department sends a letter to all authorities inviting them to submit expressions of interest. That letter is accompanied by guidance on issues to cover in submissions. The guidance is available on the Department's housing website.

Following the expression of interest stage, the Department assesses the bids. The successful authorities are invited to develop their outline business case (OBC), and my officials offer advice to authorities on an individual basis during this stage. In addition, guidance is available from the Public Private Partnerships Programme (the 4Ps), with whom the Department is working closely in developing PFI for social housing. The OBC has to be endorsed by the inter-departmental Project Review Group (PRG) which is chaired by the Office of Government Commerce (OGC) who also provide general guidance on PFI procurement.

Mr. Burstow

To ask the Secretary of State for Transport, Local Government and the Regions what criteria are used by the inter-departmental Project Review Group in assessing bids from local authorities for PFI housing schemes. [57927]

Ms Keeble

The assessment of bids for private finance initiative (PFI) housing schemes is carried out by my Department, with the help of the Government Offices for the Regions. In our recent bidding round schemes were assessed on the following criteria:

  • value for money and whether an options appraisal had been carried out;
  • evidence of housing demand and fitting in with the council's wider strategy;
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  • risk transfer;
  • stakeholder and council consultation;
  • meeting the general PFI criteria (e.g. innovation, sustainability and design quality);
  • management and timetable.

In order for a scheme to proceed, it also has to be endorsed at a later stage by the Project Review Group (PRG), who ensure that the projects which local authorities take into procurement are deliverable. PRG's assessment of all PFI schemes is based on the following criteria:

  • affordability;
  • output specification;
  • bankability of the scheme;
  • key terms and conditions;
  • use of appropriate comparators;
  • suitability of proposed advisers;
  • indicative timetable;
  • project team;
  • commitment of the sponsors;
  • statutory process.