| 1. |
INTRODUCTION |
7 |
| 2. | EXECUTIVE SUMMARY |
9 |
| 3. | BACKGROUND - THE EVOLUTION OF PFI |
13 |
| 3.1 |
INTRODUCTION | 13 |
| 3.2 | 1992 - 1997 |
13 |
| 3.3 | 1997 - 2001 |
13 |
| 3.4 | 2001 - 2005 |
15 |
| 3.5 | 2005 TO DATE |
18 |
| 4. |
MARKET OVERVIEW |
20 |
| 4.1 | BACKGROUND |
20 |
| 4.2 | MARKET SIZE |
21 |
| 4.2.1 | Market Size Perspective |
21 |
| 4.2.2 | Market Developments |
23 |
| 4.2.3 | Trends |
25 |
| 4.3 | MARKET MIX |
26 |
| 4.4 | OVERVIEW OF MAJOR DEPARTMENTS |
28 |
| 4.4.1 | Department for Transport |
28 |
| 4.4.2 | Department of Health |
30 |
| 4.4.3. | The Ministry of Defence |
33 |
| 4.4.4 | The Department for Education and Skills |
35 |
| 4.4.5 | The Office of the Deputy Prime Minister |
37 |
| 4.4.6 | The Department for the Environment and Rural Affairs |
39 |
| 4.5 | OVERALL FUTURE PROSPECTS |
41 |
| 5. |
CHAPTER FIVE PFI OPPORTUNITIES |
44 |
| 5.1 | INTRODUCTION |
44 |
| 5.2 | ACCOMMODATION |
44 |
| 5.2.1 | Introduction |
44 |
| 5.2.2 | Social Housing |
44 |
| 5.2.3 | Educational Accommodation |
53 |
| 5.2.4 | Conclusion |
56 |
| 5.3 | WASTE TREATMENT |
56 |
| 5.3.1 | Introduction |
56 |
| 5.3.2 | Waste Treatment and PFI |
58 |
| 5.3.3 | PFI Projects |
59 |
| 5.3.4 | Future PFI Projects |
61 |
| 5.3.5 | Major Suppliers |
63 |
| 5.3.6 | Conclusion |
64 |
| 5.4 | STREET LIGHTING PFI PROJECTS |
64 |
| 5.4.1 | Introduction |
64 |
| 5.4.2 | Street Lighting and PFI |
65 |
| 5.4.3 | PFI Projects |
66 |
| 5.4.4 | Future PFI Projects |
69 |
| 5.4.5 | Comments |
70 |
| 6. |
PROVIDERS |
71 |
| 6.1 | INTRODUCTION |
71 |
| 6.2 | LEADING PRIME CONTRACTORS ON DBFO/DB PROJECTS |
75 |
| 6.2.1 | Major Companies |
75 |
| 6.2.2 | The Importance of FM Providers |
78 |
| 6.3 | LEADING PRINCIPAL CONTRACTING GROUPS |
79 |
| 6.3.1 | Alfred McAlpine Plc |
79 |
| 6.3.2 | AMEC Plc |
80 |
| 6.3.3 | Amey Plc |
81 |
| 6.3.4 | Babcock & Brown Properties (BBP) |
82 |
| 6.3.5 | Balfour Beatty Plc |
82 |
| 6.3.6 | Bovis Lend Lease |
83 |
| 6.3.7 | Birse Group |
84 |
| 6.3.8 | Bowmer & Kirkland |
84 |
| 6.3.9 | Carillion Plc |
84 |
| 6.3.10 | Costain Plc |
85 |
| 6.3.11 | Edmund Nuttall |
86 |
| 6.3.12 | Galliford Try Plc |
86 |
| 6.3.13 | HBG |
87 |
| 6.3.14 | Interserve Plc |
87 |
| 6.3.15 | Jarvis Plc |
88 |
| 6.3.16 | John Laing Plc |
89 |
| 6.3.17 | Kier Group Plc |
90 |
| 6.3.18 | Laing O’Rourke Plc |
90 |
| 6.3.19 | May Gurney |
91 |
| 6.3.20 | David McLean |
91 |
| 6.3.21 | Miller Group Plc |
91 |
| 6.3.22 | Morgan Sindall Plc |
92 |
| 6.3.23 | MJ Gleeson Plc |
92 |
| 6.3.24 | Mowlem Building |
93 |
| 6.3.25 | Norwest Holst |
93 |
| 6.3.26 | Robertson Group |
93 |
| 6.3.27 | Shepherd Construction |
94 |
| 6.3.28 | Rydon/Ryhurst |
94 |
| 6.3.29 | Serco Group Plc |
95 |
| 6.3.30 | Sir Robert McAlpine Plc |
95 |
| 6.3.31 | Skanska UK |
96 |
| 6.3.32 | Taylor Woodrow Plc |
97 |
| 6.3.33 | Wates |
97 |
| 6.3.34 | Willmott Dixon Group |
97 |
| 6.3.35 | WS Atkins |
98 |
| 6.4 | CONCLUSION |
99 |
| 7. |
FUTURE PROSPECTS |
100 |
| 7.1 | INTRODUCTION |
100 |
| 7.2 | INSTITUTIONAL CHANGES |
100 |
| 7.3 | CHANGES IN THE TENDERING PROCESS |
101 |
| 7.4 | OPERATIONAL CHANGES |
102 |
| 7.5 | ALTERATIONS IN SCOPE OF PFI PROJECTS |
102 |
| 7.6 | CONCLUSION |
103 |
| GLOSSARY OF TERMS | 105 |
|
TABLES AND CHARTS
|
| CHART 1 | NUMBER AND COMBINED CAPITAL VALUE OF PFI PROJECTS SIGNED ANNUALLY – 1996 –2005 |
9 |
| CHART 2 | MIX BY DEPARTMENT OF PFI SCHEMES SIGNED IN 2005 BY CAPITAL VALUE £M |
11 |
| TABLE 3 | TOTAL PUBLIC SECTOR CAPITAL BUDGET DEPARTMENTAL EXPENDITURE LIMITS (£ BILLIONS) |
21 |
| TABLE 4 | CAPITAL SPENDING BY THE PRIVATE SECTOR (£ MILLIONS) |
22 |
| TABLE 5 | SIGNED PFI PROJECTS BY GOVERNMENT DEPARTMENT 2001 -2005* CAPITAL VALUE £M |
26 |
| TABLE 6 | ADJUSTED CAPITAL VALUE OF PFI MARKET 2001 - 2005 |
27 |
| TABLE 7 | GROWTH IN ADJUSTED CAPITAL VALUE OF PFI MARKET 2002 -2005 |
27 |
| TABLE 8 | AVERAGE ADJUSTED VALUE OF PFI PROJECTS 2001 - 2005 |
28 |
| TABLE 9 | DEPARTMENT FOR TRANSPORT – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
29 |
| CHART 10 | PRIVATE SECTOR CAPITAL SPENDING DOT 2001-2008 |
29 |
| TABLE 11 | DEPARTMENT OF HEALTH – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
32 |
| CHART 12 | PRIVATE SECTOR CAPITAL SPENDING DOH 2001-2008 |
32 |
| TABLE 13 | MINISTRY OF DEFENCE – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
34 |
| CHART 14 | PRIVATE SECTOR CAPITAL SPENDING MOD 2001-2008 |
34 |
| TABLE 15 | DEPARTMENT FOR EDUCATION AND SKILLS – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
35 |
| CHART 16 | PRIVATE SECTOR CAPITAL SPENDING DFES 2001-2008 |
36 |
| TABLE 17 | OFFICE OF THE DEPUTY PRIME MINISTER – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
38 |
| CHART 18 | PRIVATE SECTOR CAPITAL SPENDING ODPM 2001-2008 |
38 |
| TABLE 19 | DEPARTMENT FOR THE ENVIRONMENT AND RURAL AFFAIRS – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
40 |
| CHART 20 | PRIVATE SECTOR CAPITAL SPENDING DEFRA 2001-2008 |
40 |
| CHART 21 | PRIVATE SECTOR CAPITAL SPENDING ALL 2001-2008 |
42 |
| CHART 22 | PUBLIC SECTOR CONSTRUCTION OUTPUT 2001-2009 |
43 |
| TABLE 23 | AGE OF UK HOUSING STOCK |
45 |
| TABLE 24 | DECENT HOMES (EHCS) NUMBER OF DWELLINGS AND % OF STOCK |
45 |
| TABLE 25 | EXPENDITURE ON HOUSING REPAIR AND MAINTENANCE 2000 - 2005 |
46 |
| TABLE 26 | PFI PROJECTS FOR SOCIAL HOUSING 1999 - 2005 |
48 |
| TABLE 27 | PFI HOUSING SCHEMES IN PROCUREMENT |
51 |
| TABLE 28 | PFI HOUSING PROJECTS DEVELOPING AN OBC |
52 |
| TABLE 29 | EDUCATIONAL ACCOMMODATION PFI PROJECTS |
54 |
| TABLE 30 | WASTE PFI CONTRACTS SIGNED |
60 |
| TABLE 31 | WASTE PFI PROJECTS APPROVED |
61 |
| TABLE 32 | PROJECTED WASTE PFI PROJECTS WITH INDICATIVE TIMETABLES FOR COMPLETED SIGNATURE |
62 |
| TABLE 33 | SIGNED PFI STREET LIGHTING PROJECTS |
67 |
| TABLE 34 | FUTURE PFI STREET LIGHTING PROJECTS AND THEIR CURRENT STATUS |
69 |
| CHART 35 | TYPICAL STRUCTURE OF SPVS |
72 |
| CHART 36 | TYPICAL STRUCTURE OF A SPV – FINANCIAL INSTITUTION SEPARATE |
73 |
| TABLE 37 | MAJOR UK CONSTRUCTION CONTRACTORS BY REVENUE (£M) AND SECTOR STRENGTH |
76 |
| TABLE 38 | LEADING EDUCATION CONTRACTORS AND PRINCIPAL CONSORTIA |
77 |
| TABLE 39 |
LEADING FM COMPANIES IN PFI WITH ORIGINS IN CONSTRUCTION OR ENGINEERING |
78 |