HM Treasury News Release



171/98                               21 October 1998

----------------------------------------------------



GEOFFREY ROBINSON UNVEILS SECOND SIGNIFICANT PROJECTS LIST



Private Finance projects are rapidly becoming commodity products

as the second tranche of a further 30 significant PFI projects

are announced today by Paymaster General Geoffrey Robinson.



Speaking about the second list Geoffrey Robinson said:



"The Taskforce has been up and running for one year now and in

that time 52 significant projects have been signed worth nearly

#4 billion.  Today's announcement of a further 30 significant

projects shows that we intend to keep up the pace that we've set

and demonstrates the continuing success of the Government's new

approach to PFI.



"The Taksforce has made real progress in standardising PFI deals

and that is now starting to bring dividends.  Shorter completion

times and lower transaction costs mean better value for money for

the public sector.  We are well on the way to seeing a new type

of commodity product as new projects coming through begin to

benefit from much clearer prioritisation and the Taskforce's

sign-off criteria." 



The Taskforce's valuable work in standardising approaches to PFI

deals is starting to bring dividends.   As completion times

shorten, bidders exposure to transaction costs are reduced and

improved public sector's value for money, so we are well on the

way to seeing a new type of  PFI commodity product.  We are now

seeing many strong, well-structured schools and hospitals

projects coming through reflecting the Government's key priority

areas.



Adrian Montague, Chief of the Treasury Taskforce, said:



"It is vital that the template accurately reflects market

practice, and that we pitch its balance of risk and reward just

on the public sector's side of the middle of the road.  We must

retain flexibility to accommodate the unique features of each

individual project, and preserve the capacity to make innovations

in design and financing. Getting the balance right will soon get

PFI deals onto an assembly line where projects can be completed

without the delay and expense of the intensive contract

negotiations that bedevil the present process."



The Taskforce focusses its effort on a limited number of projects

which are considered to be significant - because they are either

big, high profile, highly replicable, or ground-breaking.  This

new list reflects the progress achieved as regards the projects

featuring on the Taskforce's first list of significant projects

and adds new projects which have progressed through the

development stage since then.





NOTES TO EDITORS



1.  During September the Taskforce issued, for consultation,

preliminary guidance which will lead to the development of a

standard template for PFI transactions.  The guidance was

discussed in two conferences held in London on 25 September in

which 160 leading PFI practitioners from both the public and

private sectors participated.  The Taskforce is seeking comments

on its guidance by 31 October, after which the guidance will be

revised and reissued, together with standard drafting with a view

to the standard template becoming available, after further

consultations, early in the New Year.



2.  The Treasury Taskforce was formed to give effect to one of

the central recommendations in the review of the Private finance

Initiative carried out by Sir Malcolm Bates in June 1997.  The

Taskforce provides a focal point across Government for all PFI

transactions.



3.  The Taskforce's first list of significant projects was

published on 10 February 1998.



4.  English local authority projects which receive direct

Taskforce input alongside the 4Ps are selected from those

projects earmarked for Central Government support by the

Interdepartmental Project Review Group.  A further list of these

projects will be announced shortly.



5.  Media enquiries should be addressed to Malcolm Graves on 0171

270 5192.  Detailed questions about individual projects should

be referred to the relevant government department.



6.  If you have access to the Internet you can find this news

release and other Treasury material at http://www.hm-treasury.

gov.uk and the Treasury Taskforce's website is at http://www/hm-

treasury-projects -taskforce.gov.uk  



# = pounds sterling

The Taskforce's Significant Projects

[new projects in bold: completed projects in italics]