Magazine article Public Finance

Treasury to Grab Unspent Capital Funds for PFI Rescue Scheme

Magazine article Public Finance

Treasury to Grab Unspent Capital Funds for PFI Rescue Scheme

Article excerpt

The Treasury Is to daw back unspent Whitehall capital budgets to help baH out stalled Private Finance Initiative projects.

Chief Secretary to the Treasury Yvette Cooper announced that the government would lend money to PFI projects, many of which have been held up because of problems raising private finance.

This action will ensure that crucial and valuable public Investment wMI not be disrupted by problems In the financial markets,' she said hi a parliamentary statement on March 3.

Money for the loan scheme would be raised from departmental capital underspends. Cooper said, but this Is expected to be topped up through puMc borrowing.

The Treasury wiH provide finance - expected to total between Elbnand £2bn In the next financial year - on the same commercial terms as banks. Finance will be available to any PFI project that has been advertised In the OfOeU Journal of the European Union.

Gordon McKechnte, head of PFI poflcy at the Treasury, told a conference in London that projects that have not yet been hi the OJEU but where the ? …

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