| answer text |
<p>As each Private Finance Initiative (PFI) company raises its finance in different
ways and from different sources, the most relevant and easily comparable way of describing
the cost of PFI finance is the pre-tax nominal project internal rate of return. This
rate for the Royal Stoke University Hospital PFI project was 5.70% in June 2007 based
on the Government’s standard inflation rate assumption.</p><p>At the time the Royal
Stoke University Hospital PFI was signed in June 2007, the interest rate for loans
for capital investment, which was based on the relevant National Loan Fund rates,
was 5.65%.</p><p>Where public dividend capital is made available for capital investment,
under current rules Trusts are required to pay a 3.5% dividend on its net assets.</p>
|
 |
