Collection

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.

Data

Data on PFI and PF2 projects as at 31 March 2017.

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.

Published 24 August 2017
Last updated 28 February 2022 + show all updates
  1. Addition of PFI Expiry Guidance

  2. Publication of PFI Phase 1 PFI Expiry Health Learnings Report

  3. Discontinuation of LIBOR added and text update

  4. Addition of response to COVID-19

  5. Updated with 'Private Finance Initiative and Private Finance 2 projects: 2018 summary data'.

  6. Updated with 'Private Finance Initiative (PFI) and Private Finance 2 (PF2): Budget 2018 brief'.

  7. Link to 'Private Finance Initiative and Private Finance 2 projects: 2017 summary data' added

  8. First published.