The Department's portfolio of PFI projects
1.1 In relation to the total defence budget, PFI represents a small, but important, part of the Department's annual spending. In 2007-08 the Department paid £1.3 billion in PFI service charges, approximately four per cent of its total outturn of around £36 billion.2
1.2 The Department is the fourth largest user of PFI in central government in terms of the number of contracts signed. But these are often large value contracts and the Department's annual payments to PFI contractors of over £1 billion are projected to be greater than those of any other central government department over the next three years (Figure 4).
4 | Projected annual PFI contract payments for the four major Central Government users of PFI |
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Source: Treasury - Information taken from the list of signed PFI deals taken from the Treasury website www.hm-treasurygov.uk | |
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2 Source: Ministry of Defence Resource accounts (2007-08) - This figures includes amounts paid on a small number of projects that the Department's Private Finance Unit considers to be Public Private Partnerships (PPP) deals