PFI still preferred funding mechanism for building
Published:  20 April, 2011

LONDON: The Government is to continue with PFI projects with more this year than Labour managed in 2009 despite government reviews that criticise the funding method as inefficient.

The Government will approve 40 PFI projects over 2011 estimated to be worth almost £3.7bn. This compares to 38 in 2009 and 32 in 2008. Treasury figures, obtained by Channel 4 News, shows that more PFI projects are due to reach financial completion this year than when Gordon Brown was Prime Minister.

Sixty-one schemes are in procurement due to be completed between now and March 2013, estimated to have a capital value of £6.97bn.

A Treasury spokesman said: "PFI must only be used to deliver a project where it can be shown to be good value for money.

"Going forward, all PFI projects will be considered in line with new guidance issued for major projects. "This will set an approvals and assurance plan for each project that is based on the value and risk associated with the project, so ensuring all projects receive a suitable level of scrutiny."

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