PFI Contracts (Hansard, 17 July 2000)

Mr. Alan Williams
To ask the Secretary of State for Health if he will list the PFI contracts entered into by his Department, indicating(a) their dates of commencement, (b) their value, (c) if they have been subject to refinancing and (d) if his Department has a clawback entitlement to share in savings arising from refinancing. [129050]

§ Mr. Denham
Information on refinancing in private finance initiative contracts is collected centrally for the major schemes (capital value £25 million or over) which have reached financial close. The position regarding these schemes is as follows:
sold on at a higher price. Only the contracts at Dartford and Gravesham and Bromley have forward land sales and both have such protection.
Copies of the full business cases and detailed contract summaries for all PFI schemes with a capital value greater then £10 million are available in the Library.

§ Mr. Matthew Taylor
To ask the Secretary of State for Health what is the average cost to public funds of external advisers in the negotiation of private finance initiative projects for hospitals, expressed as a proportion of each contract's value. [130260]

§ Mr. Denham
[holding answer 13 July 2000]: Information on the total amounts spent on advisers' costs is collected centrally for major private finance initiative schemes (capital value of £25 million or above) which have reached financial close. The data are set out in the table.
73W

£

Costs

NHS Trust Legal Financial Other Total As percentage of capital cost¹

Wellhouse 2,531,000 980,000 1,175,000 4,686,000 8.7

Carlisle 605,000 475,000 736,000 1,816,000 2.8

Calderdale 901,000 654,000 527,000 2,082,000 3.2

Dartford and Gravesham 1,215,000 960,000 180,000 2,355,000 2.5

South Buckinghamshire 1,653,000 780,000 169,000 2,602,000 5.8

North Durham 375,000 438,000 888,000 1,701,000 2.8

South Tees 1,706,639 938,407 310,000 2,955,046 2.4

South Durham (Bishop Auckland) 1,088,000 1,087,000 247,000 2,422,000 5.9

Worcester 1,050,000 1,110,000 300,000 2,460,000 2.8

Swindon and Marlbrorough 1,135,000 680,000 1,730,000 3,545,000 3.7

King's 2,606,575 1,374,357 785,554 4,766,486 7.4

St. George's 637,897 181,904 361,897 1,181,698 2.4

Leeds Community 685,000 308,000 514,000 1,507,000 3.2

Totals 24,351,111 16,427,668 11,900,451 52,679,230 —

¹ Capital cost defined as: total capital cost to the private sector consortium which includes cost of land, construction, equipment and professional fees but excludes Value Added Tax, rolled up interest and financing costs such as bank arrangement fees, bank due diligence fees, banks lawyers fees and third party equity costs.

All PFI schemes, including the 'second wave' and `third wave' of major prioritised schemes, are now using the new PFI guidance and standard form contract introduced under this Government, the aim of which is to reduce procurement time and transaction costs. Further standardisation of documentation on payment mechanisms and output specifications will be published shortly, which will further reduce transaction costs.

£
	Costs
NHS Trust	Legal	Financial	Other	Total	As percentage of capital cost¹
Wellhouse	2,531,000	980,000	1,175,000	4,686,000	8.7
Carlisle	605,000	475,000	736,000	1,816,000	2.8
Calderdale	901,000	654,000	527,000	2,082,000	3.2
Dartford and Gravesham	1,215,000	960,000	180,000	2,355,000	2.5
South Buckinghamshire	1,653,000	780,000	169,000	2,602,000	5.8
North Durham	375,000	438,000	888,000	1,701,000	2.8
South Tees	1,706,639	938,407	310,000	2,955,046	2.4
South Durham (Bishop Auckland)	1,088,000	1,087,000	247,000	2,422,000	5.9
Worcester	1,050,000	1,110,000	300,000	2,460,000	2.8
Swindon and Marlbrorough	1,135,000	680,000	1,730,000	3,545,000	3.7
King's	2,606,575	1,374,357	785,554	4,766,486	7.4
St. George's	637,897	181,904	361,897	1,181,698	2.4
Leeds Community	685,000	308,000	514,000	1,507,000	3.2
Totals	24,351,111	16,427,668	11,900,451	52,679,230	—
¹ Capital cost defined as: total capital cost to the private sector consortium which includes cost of land, construction, equipment and professional fees but excludes Value Added Tax, rolled up interest and financing costs such as bank arrangement fees, bank due diligence fees, banks lawyers fees and third party equity costs.