Title: Public Private Partnerships and the Private Finance Initiative
1Public Private Partnerships andthe Private
Finance Initiative
- David Locke
- Public Private Partnerships Programme (the 4Ps)
2Presentation Outline
- The 4Ps
- Position on local authority PFI
- Reasons for using partnerships
- Lessons learned
- Key issues for the chief financial officer
34ps Products
Influence
Project Support
Know How
4Local Authority PFI
- 169 projects approved for funding
- 4 billion new investment
- 72 projects signed
- 42 projects operational
- Deal flow in some sectors
- Limited use of own resources
5Investment in Local Services
- 602 new schools
- 250,000 new street lights
- New trams, roads and interchanges
- 50,000 refurbished council dwellings
- 700 residential social services spaces
- 10 new leisure facilities
- Innovative solutions to service delivery
6Drivers for Change
- More partnership working
- Best Value
- Modernisation agenda
- Internal examination of services
- Fewer restrictions/well-being powers
- Service improvements
- Good services require infrastructure
- Budgetary constraints
- Intervention
- Risk transfer
- New ways of working
Change Drivers
New service delivery methodologies
Existing service delivery methodologies
7Project and Procurement Options
Outsourcing
PFI
Other PPP eg NPDO
Improved in-house provision
Joint Ventures
Joint/pooled budgets
LA Companies
Agency
Secondment
8Why use Partnerships and the PFI?
- Value for money and Best Value
- Risk management
- Incentive to deliver whole-life solution
- Focus on service rather than functions
- Payment for service delivered
- Integration of service delivery with design and
build - Innovation and step change in service provision
9Public private partnerships also...
- Make interference more obvious
- Provide stability in service delivery
- Enables integration of design with execution and
maintenance - Enables quality of service delivery to be measured
10Delivering Successful Projects
- Justified as part of strategic review
- Investment appraisal Business Case
- Departmental objectives
- Early private sector involvement
- Realistic assessment of costs and issues
- Focus on service requirements
- Project management
11Finance Officer Involvement
- Business planning - financial modelling options
- Assessment of value for money, affordability and
bankability - Financial aspects of pre-qualification,
short-listing and bid documents - Payment mechanism
- Financial evaluation and assessment of Bids
- Accounting treatment
12Conclusions
- Progress on PPP and PFI projects
- Standardisation and guidance material
- Spending Review 2002
- Deal flow in some sectors
- Byatt and Audit Commission reviews
- Best Value and new challenges
13David Locke Telephone - 020 7472 1554 Fax -
020 7472 1560 Mobile - 07768 335099 E-mail -
david.locke_at_4ps.co.uk 6th Floor 83 Victoria
Street Westminster London SW1H 0HW www.4ps.co.uk