Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Accepted
Publish a central database on private finance for public infrastructure projects
Recommendation
There is no central record of private finance for infrastructure investment, which limits the Treasury’s ability to spot themes and patterns and deliver value for money. The overall value and number of infrastructure projects delivered using private finance models other than PFI are significant. For example, on the Regulated Asset Base model, around £9 billion was invested – including for Thames Tideway Tunnel and Heathrow Terminal 5. In addition, the government has recently announced that it will invest £14.2 billion in the Sizewell C nuclear power station. In June 2018, the previous Public Accounts Committee recommended that the Treasury and IPA publish data on the benefits of PFI and set out an approach to evaluating the value for money of operational PFI projects. In 2021, the IPA told the Committee that it was unable to conclude its evaluation, noting that this was because it was unable to make any meaningful conclusions from the data. NISTA, which has replaced the IPA, says it is now collecting more data on performance, asset condition, and PFI contract expiry so that it can learn the lessons. Unlike PFI, other financing models are not monitored by the Treasury or NISTA and there is still no information about how the relevant data will be collected and monitored centrally. recommendation The Treasury and NISTA should publish a central database covering private finance for public infrastructure. This should include (subject to commercial sensitivity), but not be limited to: • project synopsis; 4 • lead department and counterparties; • capital value; • finance type, including any government support packages; • contract length; • project business cases, including evaluation plans; and • forecast equity returns to investors.
Government Response Summary
The government committed to expanding and developing the existing Infrastructure Pipeline over time to include more detail relevant to investors, and will explore where the committee's requested information would best fit.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. information (e.g. project summary, lead department and capital value) in terms of opportunities for further private finance for projects which are planned or in construction. As set out in the 10 Year Infrastructure Strategy, the government will expand and develop the Infrastructure Pipeline over time so that it includes more detail of relevance to investors. This will take place in close collaboration with investor groups, and will explore whether, for instance, the additional information the Committee have requested sits best in the Infrastructure Pipeline or in a parallel product focussed exclusively on investible projects. Information in the Pipeline is dynamic and forward looking and would not include completed public infrastructure projects with private investment, information on legacy PFI investments, commercially sensitive information or other existing privately financed projects. Data on PFI and PF2 projects delivered by government departments and devolved administrations are published annually on gov.uk in interactive dashboard format. For individual projects this data sets out key contractual dates including expiry, original capital value, annual unitary payments, and the identity of contracting authorities, sponsoring departments, special purpose vehicles and investors.