1.1 Capital investment through PPPs signed and in procurement

As of March 2008, there were 35 signed PPP contracts in NI, with a combined capital value1 of £1.29 billion. This represents capital expenditure of £758 per head of the NI population - a significant figure, though still about £250 less than the equivalent calculation for the UK a whole (ONS 2008). This reflects the fact that private finance was used to a much lesser extent in NI than in the rest of the UK until recent years. Figure 2 illustrates this, plotting the stark increase in the capital value of projects signed per calendar year, from just £8 million in 1997 to £444 million in 2007.

Figure 2 also shows that the capital value of signed PPPs will increase significantly between 2008 and 2011, as the 13 contracts for the schemes now being negotiated are signed. The value of contracts is projected to increase from £353.6 million in 2008 to £630 million in 2011. This will increase the value of PPP contracts from £1.29 billion as of March 2008, to £3.22 billion by the start of 2012, and take the amount of private finance per head of population to £1,138 - higher than the current UK level.

Source: OFMDFM (2008)

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1 'Capital value' is an estimate of the amount of capital investment represented by a given PPP contract.