Highways Agency - Safe roads, Reliable journeys, Informed travellers

2004

Question 31/03/04 - Michael Meacher (Labour Oldham West and Royton): 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;
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.

Answer - Paul Boateng (Labour, Brent South): The government monitors the implementation of the refinancing code as part of its 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.

Some 39 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 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 refinancing gains 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 is not held centrally.

Question 05/11/04 - George Osborne: To ask the Secretary of State for Transport if he will list the private finance initiative arrangements in which the Department is engaged; what the total cost of each arrangement is (a) over its lifetime and (b) in each year of its operation; and how the arrangement appears in the Department's public accounts. [193976]

Answer - Charlotte Atkins: The forecast capital value of PFI contracts awarded by the Department for Transport and its Agencies are reported to Parliament on a six-monthly basis. Details are available from the HM Treasury website.

Details of the (a) lifetime total and (b) forecast annual unitary charge payments for all the PFI contracts awarded by the Department for Transport and its agencies have been placed in the Libraries of the House (see table below). The payment of the full unitary charge sum is contingent on the contractor providing a quality service in line with the project's output specification.

The Department for Transport Resource Accounts record:

1. a list of Private Finance Initiative contracts the Department has entered into;
2. the imputed finance lease obligations under on balance sheet PFI; and
3. the charge to the operating cost statement for future commitments.

The information in the Resource Accounts relates to Highways Agency. Payments by the Vehicle Operator and Services Agency are not consolidated into the Department's Resource Accounts.

• DfT PPP/PFI PROJECTS - SERVICE PAYMENTS IN MILLIONS (REVENUE COMMITMENTS ON SIGNED PROJECTS AS OF 28/10/04)

Question 06/11/04 - Dr. Julian Lewis: To ask the Secretary of State for Transport how many consultancy firms or companies have been retained by the Department since June 2001; what the projects are for which each has been retained; and what the total is of the fees paid or incurred in each case. [193425]

Answer - Charlotte Atkins: I refer the hon. Member to my answer of 3 November 2004, Official Report, column 251W given to the hon. Member for Stratford-on-Avon (Mr. Maples)

Question 06/12/04- Mr Goodman: To ask the Secretary of State for Transport what mechanisms there are under the 30 year contract between the Highways Agency and Highway Services (UK) Ltd. for cost recoveries through changes to the per vehicle charge. [200644]

Answer - David Jamieson: The Secretary of State does not have a contract with the company mentioned but the M40 DBFO contract is with UK Highways (M40) Ltd. The Shadow Tolls payments in the 30-year contract between the Secretary of State and UK Highways (M40) Ltd. are calculated annually and indexed to protect the contractors against inflation using the Retail Price Index as the basic factor.

Question 06/12/04 - Mr. Goodman: To ask the Secretary of State for Transport what the frequency and schedule under the 30 year contract is between the Highways Agency and Highway Services (UK) Limited for contract review. [200643]

Answer - David Jamieson: The Secretary of State does not have any contract with the company mentioned but the M40 DBFO contract is with UK Highways (M40) Ltd. Performance of the contract is reviewed on an ongoing basis but there are no provisions for formal contract review.

Question 06/12/04 - Mr. Goodman: To ask the Secretary of State for Transport what environmental terms were in the initial 30 year contract between the Highways Agency and Highway Services (UK) Ltd. [200645]

Answer - David Jamieson: The Secretary of State does not have any contract with the company mentioned but the M40 DBFO contract is with UK Highways (M40) Ltd. The contract required the company to incorporate into the construction work all of the environmental features included in the approved design. The attached extract from the Design, Build, Finance and Operate Contract between the Secretary of State for Transport and UK Highways (M40) Ltd. details further general and specific environmental terms.

"Core Operation and Maintenance Requirements

In the design, planning and execution of all works and functions associated with the operation and maintenance of the Project Facilities, the DBFO Co shall take all such action and do all such things (including, without limitation, organising itself, adopting measures and standards, executing procedures, including inspection procedures and safety patrols, and engaging and managing contractors, agents and employees) as will and in such manner as will secure . . . risk of adverse effects on the environment and on the amenity enjoyed by the owners and occupiers of land adjacent to the Project Road and to adjoining roads and facilities is minimised.

Scheme Specific Core Operation and Maintenance Requirements

The DBFO Co shall cultivate and maintain the landscaped areas of the Project Road so as to enhance the appearance and aesthetic quality of the Project Road and to mitigate its adverse environmental effects.

The DBFO Co shall operate and maintain the Site and the Operation and Maintenance Adjacent Areas so as to enhance nature conservation."

Question 06/12/04 - Mr. Goodman: To ask the Secretary of State for Transport what environmental issues have been negotiated in reviews of the 30 year contract between the Highways Agency and Highway Services (UK) Ltd. [200646]

Answer - David Jamieson: The Secretary of State does not have any contract with the company mentioned but the M40 DBFO contract is with UK Highways (M40) Ltd. There are no provisions in the Design, Build Finance and Operate Contract between the Secretary of State for Transport and UK Highways (M40) Ltd. for any formal review of environmental issues.

Question 06/12/04 - Mr. Goodman: To ask the Secretary of State for Transport how the Highways Agency is able to agree additional works with contractors under the terms of its 30 year contract with Highway Services (UK) Ltd. [201822]

Answer - David Jamieson: The Department for Transport does not have a contract with the company mentioned but the M40 DBFO contract is with UK Highways (M40) Limited. All the Department's DBFO contracts make provision for Additional Works and other Additional Services. Where the Department through its Highways Agency proposes Additional Works to be carried out it notifies the DBFO Company of such an intention by means of an Additional Works Notice:

The Additional Works Notice includes a description and/or specification of the Additional Works.

The specification should include the time by which the proposed Additional Works are to be completed.

The Additional Works Notice should specify the Additional Works Services (if any), which the Secretary of State requires the DBFO Co. to perform in respect of the Additional Works.

The Additional Works Notice should also specify the time by which any comments from the DBFO Company on the contents of the Additional Works Notice must be received.

Question 08/12/04 - John Bercow: To ask the Secretary of State for Transport what the total cost to his Department was for the use of external consultants in each of the last two years. [202427]

Answer - Charlotte Atkins: I refer the hon. Member to the answer given by the then Under-Secretary of State on 21 May 2004, Official Report, column 1231W, to the hon. Member for Castle Point (Bob Spink).

Question 14/12/04 - John Bercow: To ask the Secretary of State for Transport what the total external spending by his Department was on public-private partnership (PPP) consultants in each of the last two years; how many full-time equivalent consultants were employed over this period; how many billed consultancy days there were per year; what the implied average cost of each PPP consultant was; how many consultancy firms were used by his Department over this period; and if he will make a statement. [202429]

Answer - Charlotte Atkins: The Department for Transport (including Executive Agencies) expenditure on external PPP consultants was £23,995,700 in 2003-04 and £14,377,300 to date in 2004-05. This total includes expenditure on PFI consultants.

The Department does not retain information on the full time equivalent consultants these figures represent, or on the number of billed consultant hours. Consultants are appointed on a variety of terms only some of which are based on staff numbers or time. These reasons also prevent us from calculating an average cost per consultant.

The firms employed by the Department over this period were:

Atis Real Weatherall, Atkins Management Consultants, WS Atkins, Aukett, Berwin Leighton Painser, Bullen, Carl Bro IBI, Citigroup, Close Resources, CMS Cameron McKenna, Credit Suisse First Boston, CTRL Discretionary Purchase Auditor, CTRL Technical Disputes Panel, Deloitte, Denton Wilde Sapte, Dresdener Kleinwort, Ernst & Young, Flint & Neill, Halcrow, Michael Hamilton, Hays Accountancy Personnel, Hedra, Hyder Consulting, IBM UK, KHHD, Jacobs, JKL & Hide Recruitment, John Matchett, Mott MacDonald, Mott Parsons Gibb, MVM Recruitment, Nabarro Nathanson, Office of Government Commerce, Owen Williams, Panell Kerr Forster, Partnerships UK, Pell Frischmann, PricewaterhouseCoopers, Project Management Recruitment, Qinetiq, Turner & Townsend, Willis, Yale Consulting and Yale Data Management Consultants.

Question 14/12/04 - John Bercow: To ask the Secretary of State for Transport what the total external spending by his Department was on private finance initiative (PFI) consultants in each of the last two years; how many full-time equivalent consultants were employed over this period; how many billed consultancy days there were per year; what the implied average cost of each PFI consultant was; how many consultancy firms were used by his Department over this period; and if he will make a statement. [202419]

Answer - Charlotte Atkins: The Department for Transport (including Executive Agencies) expenditure on external Private Finance consultants was £12,571,700 in 2003-04 and £7,595,500 to date in 2004-05.

The Department does not retain information on the full-time equivalent consultants these figures represent, or on the number of billed consultant hours. Consultants are appointed on a variety of terms only some of which are based on staff numbers or time. These reasons also prevent us from calculating an average cost per consultant.

The firms employed by the Department over this period were:

Atis Real Weatherall, Atkins Management Consultants, WS Atkins, Aukett, Berwin Leighton Painser, Bullen, Carl Bro IBI, Close Resources, Deloitte, Denton Wilde Sapte, Ernst and Young, Flint and Neill, Halcrow, Hays Accountancy Personnel, Hedra, IBM UK, Jacobs, JKL and Hide Recruitment, John Matchett, Mott MacDonald, MVM Recruitment, Nabarro Nathanson, Office of Government Commerce, Owen Williams, Panell Kerr Forster, Partnerships UK, Pell Frischmann, PricewaterhouseCoopers, Project Management Recruitment, Qinetiq, Turner and Townsend, Willis, Yale Consulting and Yale Data Management Consultants.