Private Finance Initiative Scheme

Treasury written question – answered on 23rd January 2006.

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Photo of John Hemming John Hemming Liberal Democrat, Birmingham, Yardley 23rd January 2006

To ask the Chancellor of the Exchequer what calculations are performed to compare the costs of a private finance initiative scheme with traditional funding schemes from public sector borrowing.

Photo of John Healey John Healey The Financial Secretary to the Treasury 23rd January 2006

The required analysis for comparing whether a given project would be value for money using PFI compared with conventional funding is laid out in the Value for Money Guidance and the accompanying Quantitative User Guide, published in August 2004. These can be found on the HM Treasury website at:

http://www.hm-treasury.gov.uk/documents/public_private_ partnerships/key_documents/ppp_keydocs_vfm.cfm

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