The detailed information presented in this chapter on the current place of PFI investment in Government expenditure demonstrates how private finance is contributing to the modernisation of public infrastructure. The main points are: • PFI currently plays a limited but important part in public sector capital investment. Investment under PFI is projected to make up 11 per cent of total investment in public services in 2003-04. The majority - over 85 per cent - of public investment is still carried out through conventional forms of procurement; • investment in public services has increased significantly since 1997, and the PFI programme has expanded in proportion. Both the number and the total capital value of PFI projects has increased, from nine projects with a total value of £667 million in 1995 to 65 projects with a total value of £7.6 billion in 2002. Over the same period, public sector gross investment rose from £17.3 billion in 1997-98 to an expected total of £33.4 billion in 2003-04. However, the proportion of investment made up by PFI has remained steady at between 10 and 15 per cent over this period; • this investment programme is delivering extensive new and modernised infrastructure to public services. A total of 451 PFI projects have now completed construction across a broad range of sectors, delivering over 600 new public facilities including 34 hospitals and 119 other health schemes, and 239 new and refurbished schools; and • the decision to use PFI is taken on value for money grounds alone, and whether it is on or off balance sheet is not relevant. Almost 60 per cent of PFI projects by value are reported on Departmental balance sheets and fully reflected in the Government's national accounts. The Government publishes a complete statement of the costs of PFI facilities, which are fully covered by annual unitary payments, in the Budget document. |