About PPP/PFI

About PPP/PFI

UK Success

The UK’s public services have suffered from a sustained legacy of under-investment. According to a report published by HM Treasury in March 2006 entitled PFI: Strengthening long term partnerships, PFI has played an important role in delivering part of the Government’s programme of investment to deliver improved public services.

Over 500 PFI projects are currently in operation. These projects have delivered new public service facilities including:

  • 185 new or refurbished health facilities
  • 230 new and refurbished schools
  • 43 new transport projects
  • 9 waste and water projects
  • 180 other projects including defence, prisons, leisure, culture, housing

The report states that the vast majority of operational PFI projects perform to a high level when assessed against contract specification and user satisfaction.

Over 700 PFI transactions reached financial close by March 2006, with a total capital value of over £46 billion.

PFI investment has been used across all public sectors including:

  • The department of Health (DoH) with a total capital investment of £6 billion with 146 projects signed to 2006.
  • The department for Education and Skills (DfES) with a total of 144 transactions worth a total capital value of £4.1 billion.
  • department for Transport (DfT) with 41 projects and a total value of £4.7 billion.
  • The Ministry of Defence (MoD) with 53 projects and a total value of £4.5 billion.

Outside England other UK regions have signed over 170 PFI projects.

  • Scotland has 98 signed projects amounting to a total capital value of over £3 billion.
  • Wales has a total capital value of £600 million from 39 PFI projects.
  • Northern Ireland has around 40 PFI projects with a total capital value of £700 million.

According to recent research by Partnerships UK on the performance of operational PFI projects. Key conclusions are:

  • PFI is meeting the expectations of users. Public sector contract managers report that 96% of projects are performing at least satisfactorily with 66% performing to a very good or good standard.
  • 83% of contracts are described as always or almost always accurately specifying the services required.
  • 97% of public sector contract managers rated the relationship with their private sector counterpart as satisfactory or better with 72% rating it as good or very good.