Buy-out of failed PFI projects

Date

Project and companies

Buy-out of contract

Buyout cost £m

Capital cost of project £m

Buy-out of failed PFI projects

1995-2004

Skye Bridge, Scotland
Miller Civil Engineering Ltd, Dyckerhoff, Widmann AG (known as Miller-Dywidag) & BankAmerica International Finance Corporation

Closed ferry service when bridge opened in 1995 followed by vociferous community campaign against high toll fees. Tolls frozen at 1999 prices for remainder and abandoned in 2004 and concession terminated with £27m payment by Scottish Executive. www.scottish.parliament.uk/s3/committees/finance/inquiries/capInvest

27.0

39.0

1999-

Inverness Air Terminal Ltd.
Highland-Inverness Airport: Infrastructure Investors (Barclays Bank)

Scottish Executive funded buy-out by Highland & Islands Airports Ltd. Structure of contract considered disincentive to growth of new services. www.scottish.parliament.uk/s3/committees/finance/inquiries/capInvest/adviser_buyouts.pdf

27.5

9.5

1999-2006

West Lothian College
HBG (Royal BAM Group)

Scottish Funding Council, supported by Scottish Executive, bought-out contract - based on assumptions of student growth that did not materialize leaving £11m funding gap over 20 years. Change in funding policy and college faced financial crisis in funding PFI project. www.scottish.parliament.uk/s3/committees/finance/inquiries/capInvest

27.5

18.0

2003-2010

London Underground Tube Lines (Holdings) Ltd Amey UK plc and Bechtel Corporation

Transport for London acquires Tube Lines after failure of PPP contract. Amey reported £1.7m profit on sale (Annual Report 2010 p 47) Bechtel Corporation Press 7/5/2010

206.4

5,526.0

2003-2011

Tees, Esk and Wear Valleys Mental Health Foundation Trust

NHS Trust paid £18.0m in 2011 to buy-out West Park Hospital, Darlington, contract with Aviva, aided by a surplus in its 2010 accounts. Trust will save £14m over remainder of the contract.

http://www.tewv.nhs.uk/Trust-News/News/Buying-West-Park-Hospital-/

18.0

16.0