PFI Centre of Excellence
The PFI Centre of Excellence is run by the Infrastructure and Projects Authority (IPA) to provide expert support and advice to departments and contracting authorities.
A Private Finance Initiative (PFI) is a long-term contract between a private party and a government entity where the private sector designs, builds, finances and operates a public asset and related services. In a PFI contract the private party bears the risks associated with construction and maintenance and management responsibility, and remuneration is linked to performance.
PFIs have delivered around £56 billion of private sector capital investment in over 700 UK infrastructure projects. These include new schools, hospitals, roads, housing, prisons, and military equipment and accommodation.
PFIs transfer delivery, cost and performance risk to the private sector – this protects the public sector from delays, cost overruns and poor performance.
Policy
The Government announced at Budget 2018 that it would no longer use PF2 (the most recent model of the Private Finance Initiative) for new government projects. Existing PFI and PF2 contracts will not end because of this announcement. Archived documents including the retired PF2 policy and standardisation of PF2 contracts are available at the National Archive.
PFI Contract Management Programme
There are around 580 current PFI contracts (excluding those in the devolved administrations) and the PFI Centre of Excellence, run by the IPA, provides expert support and advice to departments and contracting authorities.
IPA has set up a PFI Contract Management Programme - a collaboration between the centre, departments and the functions - to manage the risks in operational PFI projects.
The aim of the Programme is that contracting authorities have the capabilities, knowledge and tools they need to manage their PFI contracts effectively and to engage confidently with their private sector partners.
The Programme comprises four projects:
- Contract Expiry - managing the risks of contract expiry and ensuring value for money as contracts end
- Improving Operational Performance - driving improved operational performance and better approaches to contract management across the PFI portfolio.
- Building Capability - building capability through systems learning, guidance and training
- Advice & Support - providing expert support and advice to departments and contracting authorities
PFI Expiry
Guidance, toolkit items and other documents relating to PFI contract expiry.
PFI Decarbonisation
Local Government Budget Information - Private Finance Initiatives
Data
Data on PFI and PF2 projects as at 31 March 2023
Forms
Forms and instructions specific to PFI/PF2/PPP arrangements.
Archived guidance
Archived documents supporting project and contract managers are available for operational taskforce and Treasury taskforce publications.
Updates to this page
Last updated 15 November 2023 + show all updates
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Added a link to the page: PFI and PF2 projects: 2023 Summary Data
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Added a link to the page: Privacy Notice for PFI Centre of Excellence
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Updated the Data list collection to include the latest publication: Private Finance Initiative and Private Finance 2 projects: 2022 summary data
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Added a link to the page: A Guide to PFI Expiry Health Checks
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Added a link to the page: Decarbonisation of Operational PFI Projects
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Added a new section: Local Government Budget Information - Private Finance Initiatives
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Addition of PFI Expiry Guidance
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Publication of PFI Phase 1 PFI Expiry Health Learnings Report
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Discontinuation of LIBOR added and text update
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Addition of response to COVID-19
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Updated with 'Private Finance Initiative and Private Finance 2 projects: 2018 summary data'.
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Updated with 'Private Finance Initiative (PFI) and Private Finance 2 (PF2): Budget 2018 brief'.
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Link to 'Private Finance Initiative and Private Finance 2 projects: 2017 summary data' added
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First published.