PFI (Hansard, 31 March 2004)

§ Sir Michael Spicer
To ask the Chancellor of the Exchequer what estimate he has made of the(a) current and (b) future cost to public funds of each existing (i) private finance initiative and (ii) public private partnership project. [163828]

§ Mr. Boateng
[holding answer 26 March 2004]: The projected aggregate future payments from public funds for existing PFI projects, are set out in Table C19 'Estimated payments under PFI contracts—April 2004 (signed deals)' in the Financial Statement and BudgetReport (FSBR) 2004. http://www.hmtreasury.gov.uk/media//1CE4C/bud04_chc_312.pdf
Figures on current and future payments for individual existing PFI projects are recorded in individual departmental accounts.
Figures on current and future costs of Public Private Partnerships are recorded in individual departmental accounts.

§ Mr. Meacher
To ask the Chancellor of the Exchequer (1) in what proportion of refinanced early private finance initiative projects the Office of Government Commerce has secured its target share of 30 per cent. refinancing gains; what proportion of deals signed since July 2002 contract for a 50/50 share of refinancing gains; and how many and what proportion of refinanced deals have applied the Office of Government Commerce application notes recommended discount rate when measuring and sharing refinancing benefits; [163925]
(2) how many and what proportion of private finance initiative contracts have been refinanced; and if he will list by Department (a) the name, date and capital value of each, (b) the expected shareholder returns when the contract was let, (c) the increase in returns from refinancing before payment of refinancing gains to the procuring authority, (d) the refinancing gains paid to the procuring authority, (e) the expected shareholder returns after sharing refinancing gains and (f) the increase in cash terms in the processing authority's maximum termination liability. [163926]

§ Mr. Boateng
The Government monitor the implementation of the Refinancing Code as part of their wider commitment to safeguard value for money for the taxpayer. Departments and other public bodies are encouraged to make full use of the Refinancing Taskforce, which has been established as a centre of expert advice to assist departments on refinancing issues and transactions.
Ten of the 11 private finance initiative projects refinanced after the introduction of the Voluntary Code of Conduct on 30 September 2002 achieved a gain share of 30 per cent. or more for the authority. The revised Standardisation of PFI Contracts (SOPC) came into effect on 30 June 2002 and all projects signed since have been required to provide for a 50/50 share of refinancing gains between authority and contractor.
Thirty-nine private finance initiative projects have been refinanced. This accounts for less than 7 per cent. of the total number of PFI projects that have reached Financial Close. The information requested in respect of; (a) the name, date and capital value of each project 1415W and (d) the refinancing gains paid to the procuring authority are listed as follows where available. The information requested in respect of; (b) the expected shareholder returns when the contract was let, (c) the increase in returns from refinancing before payment of

Project name Sponsor Department Funding value (£ million) Date refinanced Total refinancing gain (£ million) Net refinancing share (percentage) Refinancing share (£ million)

Projects refinanced prior to the entry of the Voluntary Code of Conduct

A69 Carlisle to Newcastle DBFO DfT 9 1 June 1996 — ¹100 —

Colfox School DFES 15.6 1 June 1999 1.60 25.0 0.40

Royal Armouries Museum—Refinancing DCMS 42 1 July 1999 — 0.0 —

Altcourse (Fazackerley) Prison HO Prison Service 88 1 November 1999 10.75 9.3 1.00

Ashfield (Pucklechurch) Prison HO Prison Service 30.7 1 January 2000 1.54 0.0 —

Dovegate (Marchington) Prison HO Prison Service 64 1 January 2000 3.20 0.0 —

Hassockfield (Meadomsley) STC HO 10 1 January 2000 0.50 0.0 —

Kilmarnock Prison Scottish Executive 32 1 January 2000 1.60 0.0 —

Lowdham Grange Prison HO Prison Service 32 1 January 2000 1.60 0.0 —

Sussex Weald and Downs NHST—Graylingwell Hosp. Reprovision—Chichester DoH 27 1 February 2001 — ¹100.0 —

A l9 Dishforth to Tyne Tunnel DBFO DfT 29 1 March 2001 4.55 33.0 1.50

"Heart of the City" Offices ODPM 20 1 April 2001 1.00 0.0 —

Parc (Bridgend) Prison HO Prison Service 74 1 May 2001 1.40 0.0 —

Balfron School Scottish Executive 16.5 1 June 2001 0.83 5.0 0.04

Dundee Ninewells Psychiatric Services Scottish Executive 10 1 June 2001 0.50 30.0 0.15

Mearns Primary and St. Ninian's High School Scottish Executive 12.5 1 June 2001 0.63 50.0 0.31

Newcastle Estate Development Inland Revenue 163.8 1 June 2001 14.17 60.0 8.50

HM Customs and Excise—IT Infrastructure PFI C and E 20 1 July 2001 1.00 0.0 —

M1-A1 Link Road (Lofthouse to Bramham) DfT 214 1 September 2001 10.70 0.0 —

M40 Junctions 1 to 15 DfT 130 1 October 2001 5.48 31.0 1.70

Antarctic Survey Ship DTI 22 31 December 2001 1.10 0.0 —

North Wiltshire DC—Property Rationalisation ODPM 7 1 January 2002 0.35 5.0 0.02

Brooklands Avenue, Cambridge DEFRA 21 1 February 2002 0.80 50.0 0.40

Calderdale Hospital DoH 65.6 1 May 2002 12.00 30.0 3.60

Joint Services Command and Staff College MOD 93 1 June 2002 1.27 30.0 0.38

Manchester Inland Revenue Accommodation Project Inland Revenue 32 1 July 2002 1.60 0.0 —

A30/A35 Exeter to Bere Regis DBFO DfT 75 1 September 2002 3.75 0.0 —

A50/A564 Stoke-Derby Link DfT 21 1 September 2002 1.05 0.0 —

Projects refinanced after the entry of the Voluntary Code of Conduct

Second Severn Crossing DfT (highways) 331 31 December 2002 63.00 40.0 25.00

Bute Avenue Wales 45 12 February 2003 8.00 30.0 2.50

Dartford and Gravesham Hospital NHS Trust DoH 122 25 March 2003 33.13 35.2 11.66

Debden Park School DFES 17.7 31 March 2003 1.34 30.0 0.40

Hillingdon—Barnhill School DFES 18.8 1 May 2003 0.94 0.0 —

Cardinal Heenan (VA) School DFES 7.7 20 May 2003 0.98 50.0 0.49

Central Scotland Family Quarters—Bannockburn MOD 25 10 June 2003 6.07 30.0 1.82

Haringey Schools DFES 62.5 11 September 2003 3.00 30.0 0.9

Bridlington Schools DFES 26 10 September 2003 1.00 30.0 0.30

Brent Jews Free School DFES 9 22 September 2003 0.80 30.0 0.25

Norwich and Norfolk Health Care NHS Trust DoH 335 18 December 2003 90.00 32.0 29.10

¹ The benefit of the refinancing gains was transferred to the Procuring Authority at the outset of the project through a reduction in the project costs to match the forecasted level of refinancing gains.

Project name	Sponsor Department	Funding value (£ million)	Date refinanced	Total refinancing gain (£ million)	Net refinancing share (percentage)	Refinancing share (£ million)
Projects refinanced prior to the entry of the Voluntary Code of Conduct
A69 Carlisle to Newcastle DBFO	DfT	9	1 June 1996	—	¹100	—
Colfox School	DFES	15.6	1 June 1999	1.60	25.0	0.40
Royal Armouries Museum—Refinancing	DCMS	42	1 July 1999	—	0.0	—
Altcourse (Fazackerley) Prison	HO Prison Service	88	1 November 1999	10.75	9.3	1.00
Ashfield (Pucklechurch) Prison	HO Prison Service	30.7	1 January 2000	1.54	0.0	—
Dovegate (Marchington) Prison	HO Prison Service	64	1 January 2000	3.20	0.0	—
Hassockfield (Meadomsley) STC	HO	10	1 January 2000	0.50	0.0	—
Kilmarnock Prison	Scottish Executive	32	1 January 2000	1.60	0.0	—
Lowdham Grange Prison	HO Prison Service	32	1 January 2000	1.60	0.0	—
Sussex Weald and Downs NHST—Graylingwell Hosp. Reprovision—Chichester	DoH	27	1 February 2001	—	¹100.0	—
A l9 Dishforth to Tyne Tunnel DBFO	DfT	29	1 March 2001	4.55	33.0	1.50
"Heart of the City" Offices	ODPM	20	1 April 2001	1.00	0.0	—
Parc (Bridgend) Prison	HO Prison Service	74	1 May 2001	1.40	0.0	—
Balfron School	Scottish Executive	16.5	1 June 2001	0.83	5.0	0.04
Dundee Ninewells Psychiatric Services	Scottish Executive	10	1 June 2001	0.50	30.0	0.15
Mearns Primary and St. Ninian's High School	Scottish Executive	12.5	1 June 2001	0.63	50.0	0.31
Newcastle Estate Development	Inland Revenue	163.8	1 June 2001	14.17	60.0	8.50
HM Customs and Excise—IT Infrastructure PFI	C and E	20	1 July 2001	1.00	0.0	—
M1-A1 Link Road (Lofthouse to Bramham)	DfT	214	1 September 2001	10.70	0.0	—
M40 Junctions 1 to 15	DfT	130	1 October 2001	5.48	31.0	1.70
Antarctic Survey Ship	DTI	22	31 December 2001	1.10	0.0	—
North Wiltshire DC—Property Rationalisation	ODPM	7	1 January 2002	0.35	5.0	0.02
Brooklands Avenue, Cambridge	DEFRA	21	1 February 2002	0.80	50.0	0.40
Calderdale Hospital	DoH	65.6	1 May 2002	12.00	30.0	3.60
Joint Services Command and Staff College	MOD	93	1 June 2002	1.27	30.0	0.38
Manchester Inland Revenue Accommodation Project	Inland Revenue	32	1 July 2002	1.60	0.0	—
A30/A35 Exeter to Bere Regis DBFO	DfT	75	1 September 2002	3.75	0.0	—
A50/A564 Stoke-Derby Link	DfT	21	1 September 2002	1.05	0.0	—
Projects refinanced after the entry of the Voluntary Code of Conduct
Second Severn Crossing	DfT (highways)	331	31 December 2002	63.00	40.0	25.00
Bute Avenue	Wales	45	12 February 2003	8.00	30.0	2.50
Dartford and Gravesham Hospital NHS Trust	DoH	122	25 March 2003	33.13	35.2	11.66
Debden Park School	DFES	17.7	31 March 2003	1.34	30.0	0.40
Hillingdon—Barnhill School	DFES	18.8	1 May 2003	0.94	0.0	—
Cardinal Heenan (VA) School	DFES	7.7	20 May 2003	0.98	50.0	0.49
Central Scotland Family Quarters—Bannockburn	MOD	25	10 June 2003	6.07	30.0	1.82
Haringey Schools	DFES	62.5	11 September 2003	3.00	30.0	0.9
Bridlington Schools	DFES	26	10 September 2003	1.00	30.0	0.30
Brent Jews Free School	DFES	9	22 September 2003	0.80	30.0	0.25
Norwich and Norfolk Health Care NHS Trust	DoH	335	18 December 2003	90.00	32.0	29.10
¹ The benefit of the refinancing gains was transferred to the Procuring Authority at the outset of the project through a reduction in the project costs to match the forecasted level of refinancing gains.