Select Committee on Health Memoranda


MEMORANDUM

Memorandum by the Department of Health

Table 4.8c

EXPENDITURE PROFILE OF CAPITAL SPEND ON PFI SCHEMES AS AT 31 MARCH 1999


Spend Profile of the Total Capital Cost
StatusTotal Capital Cost to the Private Sector (1,2)£m Start on Site DateCompletion Date 1997-981998-99 1999-20002000-01 2001-022002-03 2003-042004-05 2005-062006-07 Total

   Schemes with capital cost £25m +
Northern & Yorkshire                                                                                                                                                                                                                                                                                            
Calderdale Healthcare NHS Trust - Centralisation of Acute Services FC64.6Aug-98 Apr-016.5 16.229.112.9 64.6
Carlisle Hospitals NHS Trust - Centralisation to Cumberland Inf Site FC64.7Nov-97 May-006.516.2 29.112.9 64.7
Leeds Community and Mental Health Sevices Teaching NHS Trust - High Royds Reprovision OBC43.0 4.3 28.010.8 43.0
North Durham Health Care NHS Trust - New DGH FC61.0Apr-98 Nov-016.1 15.327.512.2 61.0
South Durham Health Care NHS Trust - Redev. Bishop Auckland GH OBC41.2 4.1 26.810.3 41.2
South Tees Acute Hospitals NHS Trust - Central. At S Cleveland Hospital OBC96.3 9.6 24.143.319.3 96.3
Newcastle Upon Tyne Hospitals NHS Trust SOC123.8 12.418.6 37.137.118.6 123.8
Total Northern & Yorkshire 494.6 6.528.778.6 148.3101.937.8 37.137.118.6 0.0494.6
Trent
No Schemes 0.0
Total Trent0.0 0.0 0.00.00.0 0.00.00.0 0.00.00.0 0.0
Eastern
Norfolk & Norwich Health Care NHS Trust FC143.5Jan-98 Jan-0214.4 43.043.043.1 143.5
Total Eastern143.5 0.0 14.443.043.0 43.10.00.0 0.00.00.0 143.5
London
Wellhouse NHS Trust - Barnet Phase 1BFC 54.0Mar-99Apr-02 5.4 35.113.5 54.0
West Middlesex University Hospital NHS Trust - Accute Rationalisation SOC33.0 3.321.58.3 33.0
University College London Hospitals NHS Trust - Acute Rationalisation OBC160.0 16.024.048.0 48.024.0 160.0
The Royal Hospitals NHS TrustSOC 250.0 25.037.063.0 50.050.025.0 250.0
St. George's Hospital NHS Trust - Neurol Cardiac Unit OBC40.0 4.026.010.0 40.0
Bromley Hospitals NHS Trust - New DGHFC 117.9Dec-98Jan-02 13.9 52.052.0 117.9
Greenwich Healthcare NHS Trust - Refurb. Of DGH FC93.0Jul-98 Jan-0117.0 31.045.0 93.0
King's Healthcare NHS Trust - New Block OBC64.0 6.0 16.029.013.0 64.0
Total London811.9 0.0 17.056.3171.4 191.0116.3111.0 74.050.025.0 811.9
South East
South Buckinghamshire NHS Trust - Site rationalisation FC45.1Jan-98 Jan-004.529.3 11.3 45.1
Dartford and Gravesham NHS Trust -new DGH FC94.0Aug-97 Jul-009.423.5 42.318.8 94.0
West Berkshire Priority Care Service NHS Trust -reprovision of Fairmile psychiatric hospital OBC29.4 2.97.313.2 6.0 29.4
Total South East 168.513.9 52.853.621.7 7.313.26.0 0.00.00.0 168.5
South West
Swindon & Marlborough NHS Trust - New DGH OBC96.3 9.6 24.143.319.3 96.3
Total South West 96.30.0 0.09.624.1 43.319.30.0 0.00.00.0 96.3
West Midlands
Walsgrave Hospitals NHS Trust - New DGH SOC180.9 18.127.1 54.354.327.1 180.9
Dudley Priority Health NHS Trust - Refurbishment/New DGH SOC67.7 6.816.930.5 13.5 67.7
Worcester Royal Infirmary NHS Trust - New DGH FC86.6May-99 Mar-02 8.721.756.3 86.6
Hereford Hospitals NHS Trust - Refurbishment/New DGH FBC64.1 6.4 16.028.812.8 64.1
Total West Midlands 399.3 0.00.015.1 44.5120.270.4 67.854.327.1 0.0399.3
North West
Central Manchester
Healthcare NHS Trust &
Manchester Children's
Hospitals NHS Trust
SOC127.0 12.719.1 38.138.119.1 127.0
South Manchester University Hospitals NHS Trust FC65.6Aug-98 Sep-016.6 16.429.513.1 65.6
Total North West 192.60.0 6.616.429.5 25.819.138.1 38.119.10.0 192.6
Total England2,306.7 20.4 119.4272.6482.4 532.5276.0260.1 203.5114.825.0 2,306.7
Schemes with capital cost £10m to £25m
Northern & Yorkshire
Northumbria Health Care NHS Trust - Redevelopment of Hexham GH OBC18.0 1.811.74.5 18.0
Northumbria Health Care NHS Trust - Wansbeck GH Phase II OBC18.2 1.8 11.84.6 18.2
Northumberland Mental Health NHS Trust - St George's Hospital, Morpeth OBC18.0 1.811.7 4.5 18.0
Royal Hull Hospitals NHS Trust - Maternity and Acute Dev, Hull RI OBC21.7 2.2 14.15.4 21.7
Total Northern & Yorkshire 75.9 0.00.04.0 27.723.516.2 4.50.00.0 0.075.9
Trent
Queens Medical Centre, Nottingham University
Hospital NHS
TrustENT/Ophthalmology scheme
OBC16.6 1.7 10.84.1 16.6
Nottingham Healthcare NHS Trust - Elderly/Mental Health OBC12.1 1.27.93.0 12.1
Total Trent28.7 0.0 0.01.712.0 12.03.00.0 0.00.00.0 28.7
Eastern
Luton & Dunstable Hospitals NHS Trust - St Mary's OBC14.7 1.5 9.63.6 14.7
Essex & Herts Community Health Services NHS Trust - Herts & Essex Hospital OBC11.4 1.17.42.9 11.4
Total Eastern26.1 0.0 0.01.510.7 11.02.90.0 0.00.00.0 26.1
London
Camden & Islington Community Health Services NHS Trust- MH OBC14.0 1.49.1 3.5 14.0
Parkside Health NHS Trust - WillesdenOBC 11.0 1.17.22.8 11.0
Newham Community Health Services NHS Trust - MH reprovision OBC14.5 1.59.43.6 14.5
Newham Healthcare NHS Trust - Rationalisation OBC20.0 2.013.05.0 20.0
Oxleas NHS Trust - Reprovision of Mental Health FC15.0Dec-98 Oct-003.0 8.04.0 15.0
Total London74.5 0.0 3.08.07.5 24.924.96.3 0.00.00.0 74.5
South East
South East
Stoke Mandeville Hospital NHS Trust - partial redevelopment OBC23.7 2.415.45.9 23.7
Mid-Kent Healthcare NHS Trust - Maidstone Hospital ophthalmology OBC14.3 7.1 7.2 14.3
Surrey Hampshires Borders NHS Trust -Farnham Community Resource Centre OBC15.0 7.5 7.5 15.0
Sussex Weald & Downs NHS Trust -Graylingwell mental health reprovision OBC17.0 1.7 11.04.3 17.0
Southampton Community Health Services NHS Trust -new community hospital development, Lymington OBC18.0 1.8 11.74.5 18.0
West Berkshire Priority Care Services NHS Trust -Newbury Hospital development OBC18.0 1.811.74.5 18.0
Portsmouth Healthcare NHS Trust -mental health and learning disability reprovision OBC11.0 1.1 7.22.7 11.0
Thames Gateway NHS Trust -Sheppey Community Hospital OBC10.0 1 6.52.5 10.0
Total South East 127.00.0 0.020.255.3 41.110.40.0 0.00.00.0 127.0
South West
No Schemes 0.0
Total South West 0.00.0 0.00.00.0 0.00.00.0 0.00.00.0 0.0
West Midlands
Northern Birmingham Mental Health NHS Trust OBC12.3 1.2 8.03.1 12.3
North Staffordshire Combined Healthcare NHS Trust OBC19.2 1.9 12.54.8 19.2
The Royal Wolverhampton Hospitals NHS Trust OBC12.5 1.38.13.1 12.5
Total West Midlands 43.9 0.00.03.1 21.716.03.1 0.00.00.0 0.043.9
North West
No Schemes 0.0
Total North West 0.00.0 0.00.00.0 0.00.00.0 0.00.00.0 0.0
Total England376.1 0.0 3.038.5134.9 128.560.510.8 0.00.00.0 376.1
Schemes with capital cost between £1m - £10m
Northern & Yorkshire 52.8 5.77.011.4 19.49.40.0 0.00.00.0 0.052.8
Trent34.1 4.4 4.18.010.8 6.80.00.0 0.00.00.0 34.1
Eastern28.5 0.0 0.013.114.2 1.20.00.0 0.00.00.0 28.5
London40.7 3.8 10.07.512.7 6.70.00.0 0.00.00.0 40.7
South East50.2 2.7 11.219.914.3 2.10.00.0 0.00.00.0 50.2
South West30.8 7.4 7.48.08.0 0.00.00.0 0.00.00.0 30.8
West Midlands10.7 0.0 2.64.62.7 0.80.00.0 0.00.00.0 10.7
North West26.1 0.0 5.613.17.5 0.00.00.0 0.00.00.0 26.1
Total England273.8 24.0 47.985.589.6 26.90.00.0 0.00.00.0 273.8
Overall Total for PFI:
England2,956.6 44.3 170.4396.6706.8 687.9336.5270.8 203.5114.825.0 2,956.6


Footnotes:

1.  PFI deals provide a fully serviced hospital facility. It is not their primary purpose to provide a capital asset therefore the valuation of the asset is not fundamental to the contract. All asset valuations are estimates. The value of schemes that have not reached financial close are liable to change.

2.  Total Capital Cost to the Pivate Sector includes the costs of land, construction, equipment and professional fees, but excludes VAT, rolled up interest and financing costs such as bank arrangements fees, bank due diligence fees, banks' lawyers fees and third party equity costs. As PFI procures a service rather than the underlying asset, capital values shown are necessarily estimates.

3.  The phasing of capital expenditure by the private sector is generally not available. The spend profile has been determined using a standard formula, below, or a best estimate, to spread the total capital cost to the private sector over the estimated contruction period new line.

Size of Scheme
£m
Yr 1% of
Capital Cost
Yr 2% of
Capital Cost
Yr 3% of
Capital Cost
Yr 4% of
Capital Cost
Yr 5% of
Capital Cost
Yr 6% of
Capital Coat

Under 10
50
50
Between 11-50
10
65
25
Between 51-100
10
25
45
20
Between 101-200
10
15
30
30
15
200+
10
15
25
20
20
10


The information does not provide details of schemes below £10 million.

These figures may not sum due to rounding.

4.8c(ii)   What revenue or transitional support is being given to support PFI schemes?

  A nationally agreed support scheme will provide assistance to 12 of the PFI schemes prioritised in the first wave. This scheme is designed to equalise payment streams for privately financed and publicly procured projects by spreading capital costs across 60 years rather than the primary concession period. Under the scheme, a proportion of the concession payments each year will be capitalised in recognition of the future economic benefits from the reduced payments in the secondary concession period. This provides a constant annual benefit over the primary concession period, as shown below. In addition there are some locally agreed arrangements to provide transitional support to schemes.


 
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© Parliamentary copyright 1999
Prepared 18 October 1999