§ 31. Dr. Lynne JonesTo ask the Secretary of State for Education and Employment what assessment he has made of the value for money of using the private finance initiative for school buildings. [138394]
§ Jacqui SmithValue for money is the prime consideration in any decision to support a school's PH project. Local authorities assess value for money by comparing the cost, in net present value terms, of the PFI scheme against what would be the assessed cost of a similar public sector project that would achieve the same outcomes. This assessment is done at the outline business case stage before the Project Review Group approves the project, and also confirmed at the full business case stage before the contract is signed.
To date, all schools' PFI schemes have demonstrated a positive value for money benefit compared to the assessed cost of a comparative public sector project.