INTRODUCTION and OVERVIEW 

AMA Research have published the 4th edition of the ‘Private Finance Initiative – UK 2006” report incorporating primary research and drawing extensively upon primary, secondary and published sources.  The report provides a wide-ranging and informative perspective on the sector and provides a review of the entire market for PFI schemes.

Since its introduction in 1992, the Private Finance Initiative has progressed to become a major source of funding across a wide range of government departments.  Over 700 projects have been signed to date with a combined capital value of nearly £50 bn. 

The report reviews the situation at the moment, with a focus on forecasts over the next few years, the key areas of opportunity for PFI and a review of the current perceived advantages and disadvantages of PFI in the light of the recent well-publicised difficulties in the health sector in particular.  Growth areas are identified, along with key trends and those sectors likely to yield substantial future opportunities for prime contractors.

Over 100 pages and 38 charts & tables. Key areas of coverage in the report include:

• UK PFI Market – Market development and recent trends.  PFI projects signed to date. Public Expenditure plans. Recent influences including legislative changes, institutional developments and the redefinition of government policy in “PFI : Strengthening Long-Term Partnerships” (March 2006).

Focus on 3 Major Opportunities - waste treatment, social housing, street lighting, offering significant opportunity for PFI in the near term future.

• Sectoral Breakdown of the PFI Market – Analysis of PFI schemes by Government Department over the last five years and forecast over the next 2-3 years.  Details of the number of projects awarded and their capital values.  Recent influences and trends by sector.  Future prospects and opportunities. Analysis of contracting consortia and prime contractors, with emphasis on main construction contractors and hard FM providers.  Focus of activities, major schemes won.  Effect of market consolidation.

Areas of particular interest:-

• Analysis of recent growth areas such as education and social housing.

• Assessment of the situation in the health sector.

• Identification of future growth markets for PFI in the UK.

• Details of initiatives aimed at improving value for money.

• Evolution of the market, leading to a redefinition of suitability criteria for PFI projects and moves to introduce some flexibility into long term contracts.

Key areas of coverage in the report include:

• The current situation – funds already committed, impact of recent developments.

• Market size. Capital expenditure on PFI.

•  Relative importance of PFI expenditure as compared to Government spending.

• Key recent issues including financial markets, procurement practice, institutional developments, regulation and redefinition of the scope of FM services.

• Current market mix by Government Departments responsible for allocating credits.

• Future trends and forecasts for PFI funding in Public Sector projects.

• Health sector issues.

• Identification of potential growth areas – waste treatment, social housing, street lighting.

• Analysis of signed projects – capital value, contracting parties, length of procurement time.

• Analysis of projects under consideration, with, where applicable, status, capital value, contracting parties.

SECTOR ANALYSIS

• Sectors covered in detail include – Defence, Education, Environment, Health, Office of the Deputy Prime Minister, Transport.

• Sectoral analysis of PFI projects committed – total amounts, major projects signed, capital values.

• Forecast by sector through to 2007/08.

• Key issues within sectors – procurement changes, relevant initiatives and Government policies, growth areas within sectors.

• Assessment of changes in the supply structure – market withdrawals, new players.

• Major Prime Contractors – principal activities, recent history, major contracts won (signed/preferred bidder status), key areas of strength.

• ‘PFI: Strengthening Long-term Partnerships’ – outline of the Governments current approach to PFI including guidelines regarding appropriate use of PFI.  Types of schemes where PFI has proved successful/unsuccessful – impact on future prospects.  Areas attracting future attention.

• National Audit Office Survey – impact of PFI to date, effect on future outlook.

• Initial stages of PFI – evolution from its introduction in 1992, the election of the Labour Government in 1997 to date.

• Early reviews of the PFI – the Bates review and the reorganisation of public procurement.

• Initial stages of PFI – evolution from its introduction in 1992 to the election of the Labour Government in 1997.

• Early reviews of the PFI – the Bates review and the reorganisation of public procurement.

• ‘PFI: Meeting the investment challenge’ – outline of the Governments current approach to PFI including guidelines regarding appropriate use of PFI. Types of schemes where PFI has proved successful/unsuccessful – impact on future prospects.

• National Audit Office Survey – impact of PFI to date, effect on future outlook.

This report contains over 100 pages, with over 38 tables and charts, providing a comprehensive review of past, present and future developments within the UK Private Finance Initiative Market.