171/98
21 October 1998
GEOFFREY ROBINSON UNVEILS SECOND SIGNIFICANT PROJECTS LIST
Private Finance projects are rapidly becoming commodity products as the second tranche of a further 30 significant PFI projects are announced today by Paymaster General Geoffrey Robinson.
Speaking about the second list Geoffrey Robinson said:
"The Taskforce has been up and running for one year now and in that time 52 significant projects have been signed worth nearly £4 billion. Today's announcement of a further 30 significant projects shows that we intend to keep up the pace that we've set and demonstrates the continuing success of the Government's new approach to PFI.
"The Taskforce has made real progress in standardising PFI deals and that is now starting to bring dividends. Shorter completion times and lower transaction costs mean better value for money for the public sector. We are well on the way to seeing a new type of commodity product as new projects coming through begin to benefit from much clearer prioritisation and the Taskforce's sign-off criteria."
The Taskforce's valuable work in standardising approaches to PFI deals is starting to bring dividends. As completion times shorten, bidders exposure to transaction costs are reduced and improved public sector's value for money, so we are well on the way to seeing a new type of PFI commodity product. We are now seeing many strong, well-structured schools and hospitals projects coming through reflecting the Government's key priority areas.
Adrian Montague, Chief of the Treasury Taskforce, said:
"It is vital that the template accurately reflects market practice, and that we pitch its balance of risk and reward just on the public sector's side of the middle of the road. We must retain flexibility to accommodate the unique features of each individual project, and preserve the capacity to make innovations in design and financing. Getting the balance right will soon get PFI deals onto an assembly line where projects can be completed without the delay and expense of the intensive contract negotiations that bedevil the present process."
The Taskforce focuses its effort on a limited number of projects which are considered to be significant - because they are either big, high profile, highly replicable, or ground-breaking. This new list reflects the progress achieved as regards the projects featuring on the Taskforce's first list of significant projects and adds new projects which have progressed through the development stage since then.
NOTES TO EDITORS
1. During September the Taskforce issued, for consultation, preliminary guidance which will lead to the development of a standard template for PFI transactions. The guidance was discussed in two conferences held in London on 25 September in which 160 leading PFI practitioners from both the public and private sectors participated. The Taskforce is seeking comments on its guidance by 31 October, after which the guidance will be revised and reissued, together with standard drafting with a view to the standard template becoming available, after further consultations, early in the New Year.
2. The Treasury Taskforce was formed to give effect to one of the central recommendations in the review of the Private finance Initiative carried out by Sir Malcolm Bates in June 1997. The Taskforce provides a focal point across Government for all PFI transactions.
3. The Taskforce's first list of significant projects was published on 10 February 1998.
4. English local authority projects which receive direct Taskforce input alongside the 4Ps are selected from those projects earmarked for Central Government support by the Interdepartmental Project Review Group. A further list of these projects will be announced shortly.
5. Media enquiries should be addressed to Malcolm Graves on 0171
270 5192. Detailed questions about individual projects should
be referred to the relevant government department.
The Taskforce's Significant Projects [new projects in bold: completed projects in italics]
MINISTRY OF AGRICULTURE, FISHERIES & FOOD
Broadland Flood Alleviation Strategy (Environment Agency) ITN issued October 1998 Pevensey Bay Sea Defence (Environment Agency) ITN issued September 1998
CABINET OFFICE
GCHQ - new accommodation project Preferred bidder selected October 1998
CUSTOMS AND EXCISE
STEPS (Strategic Transfer of Estate to Private Sector) (joint with Inland Revenue) OJEC expected Spring 1999
IS/IT Infrastructure Shortlist. BAFO expected November 1998
MINISTRY OF DEFENCE
Colchester Garrison BAFO expected December 1998
MOD Wide Water and Sewerage Under development
Heavy Equipment Transporter ITN expected November 1998
MoD Main Building Refurbishment Preferred bidder to be selected November 1998
White Fleet projects (Central Britain, Scotland and Southern Britain) ITNs issued
Future Strategic Tanker Aircraft Under development
Inner London PPP (Chelsea)
DEPARTMENT FOR EDUCATION AND EMPLOYMENT
Dudley MBC, schools IT network (local authority) Preferred Bidder announced October 1998
Stoke on Trent, schools estate (local authority) ITN issued August
Tower Hamlets, grouped schools (local authority) OJEC issued September
Sheffield, grouped schools (local authority) OJEC issued June
Development of Cornwall, grouped schools (local authority)
Development of Kirklees, grouped schools (local authority)
Lambeth, school/urban regeneration (local authority) ITN issued June 1998
Haringey Secondary Schools Estate OJEC issued September 1998
Newbury College (FEFC) Issue BAFO to 2 shortlisted bidders in November
Employment Service IT Partnership Project Completed May 1998
DEPARTMENT OF ENVIRONMENT, TRANSPORT AND THE REGIONS
Regional Traffic Control Centres OJEC expected late 1998
A13 Thames Gateway DBFO October 1998 - ITN
Development of Public/Private Partnerships for London Underground
Channel Tunnel Rail Link June 1998 - restructuring plan announced
Connect (London Underground) August 1998 - Single bidder selected
MOT Computerisation (Vehicle Inspectorate) August shortlist announced
New Scottish Air Traffic Control Centre (CAA) Preferred Bidder
Power (London Underground) Completed August 1998
Prestige (London Transport) Completed August 1998
Staffordshire Street Lighting (local authority) OJEC expected late 1998
Development of Norwich City Council Electronic Information Network (local authority) OJEC expected November 1998
Hereford and Worcester, waste management (local authority) Preferred bidder selected
Surrey Integrated Waste - QUEST (local authority) July 1998 issued ITT
FOREIGN AND COMMONWEALTH OFFICE
Global Telecoms Project Preferred bidder expected November 1998
HM TREASURY
GOGGS - HM Treasury building October 1998 resumption of discussions with preferred bidder
DEPARTMENT OF HEALTH
Major Acute Hospitals - Tranche 1
Calderdale completed July 1998
Greenwich completed July 1998
North Durham completed March 1998
South Manchester completed August 1998
Support as required for the remaining Tranche 1 schemes
Bishop Auckland
Bromley
South Tees
Swindon & Marlborough
Wellhouse
Worcester
Major Acute Hospitals - London
University College London preferred bidder
Major Acute Hospitals - Tranche 2
West Middlesex OJEC September 1998
Dudley OJEC September 1998
Walsgrave In development
Royal Group of Hospitals In development
Newcastle In development
Central Manchester/ Manchester Childrens Hospital In development
West Berkshire OJEC November 1998
DEPARTMENT OF CULTURE, MEDIA AND SPORT
British Library - Digitisation Project expected Mid 1999
HOME OFFICE
Central London Estate BAFO response 2 November 1998
Marchington and Onley Prisons Preferred bidder expected December 1998
IT2000 Shortlist, expected early 1999
Public Safety Radio Communication Project Preferred Bidder, expected early 1999
QUANTUM (IT infrastructure for prisons) Under review
INLAND REVENUE
STEPS (Strategic Transfer of Estate to Private Sector (joint with Customs & Excise) OJEC expected Spring 1999
LAW OFFICERS' DEPARTMENT
Case Management IT (Crown Prosecution Service) Under development
LORD CHANCELLOR'S DEPARTMENT
Hereford and Worcester Magistrates' Court (local authority) June 1998 Preferred bidder selected
LIBRA Magistrates' Courts IT services July 1998 Preferred bidder selected
NATIONAL SAVINGS
Development of Public/Private Partnerships ITT July 1998
NORTHERN IRELAND CIVIL SERVICE
Development of PPPs in the Water Industry, including Kinnegar Sewerage Project (DoE) September 1998 Preferred bidder selected (Kinnegar)
Classroom 2000 (Western Education and Library Board/DENI) OJEC expected November 1998
Social Security Agency (NI version of ADAPT) ITN to be issued early 1999
SCOTTISH OFFICE
Development of Glasgow District Heating System proposals (Glasgow City Council) Feasibility study
Glasgow Secondary Schools Estate/IT Service (Glasgow City Council) Shortlist announced
Falkirk Schools (Falkirk Council) Completed August 1998
Hairmyres and Stonehouse Hospitals NHS Trust Completed April 1998
Law Hospital NHS trust Completed June 1998
Royal Infirmary of Edinburgh NHS Trust Completed August 1998
DEPARTMENT OF SOCIAL SECURITY
ACCORD (IT infrastructure project) Preferred bidder expected October 1998
Assistance with ADAPT (Benefits Agency field offices) Being reviewed by ministers
Post Office Computerisation project (BA/POCL) Under review
DEPARTMENT OF TRADE AND INDUSTRY
ELGAR (Electronic Government through Administrative Re-engineering) Completed October 1998
WELSH OFFICE
A55 Preferred bidder expected October 1998
Baglan Hospital Preferred bidder expected October 1998
Bute Avenue