| 1. |
INTRODUCTION |
6 |
| 2. |
EXECUTIVE SUMMARY |
7 |
| 2.1 | SITUATION ASSESSMENT |
7 |
| 2.2 | FUTURE PROSPECTS |
10 |
| 3. |
BACKGROUND - THE EVOLUTION OF PFI |
12 |
| 3.1 | INTRODUCTION |
12 |
| 3.2 | 1992 - 1997 |
12 |
| 3.3 | 1997 - 2001 |
12 |
| 3.4 | 2001 - 2005 |
13 |
| 3.5 | 2005 TO DATE |
16 |
| 4 |
MARKET OVERVIEW |
18 |
| 4.1 | BACKGROUND |
18 |
| 4.2 | MARKET PERSPECTIVE |
19 |
| 4.2.1 |
Departmental Capital Budgets |
19 |
| 4.2.2 |
Key Influences on the PFI Sector |
20 |
| 4.3 | OVERALL PFI MARKET |
25 |
| 4.3.1 |
Market Size | 25 |
| 4.3.2 |
Sector Mix | 28 |
| 4.4 | OVERALL FUTURE PROSPECTS |
30 |
| 5 |
FOCUS ON THE MAJOR DEPARTMENTS |
33 |
| 5.1 | DEPARTMENT FOR TRANSPORT |
33 |
| 5.2 | DEPARTMENT OF HEALTH |
35 |
| 5.3 | THE MINISTRY OF DEFENCE |
38 |
| 5.4 | THE DEPARTMENT FOR DEPARTMENT FOR CHILDREN, SCHOOLS AND FAMILIES |
40 |
| 5.5 | DEPARTMENT FOR COMMUNITIES AND LOCAL GOVERNMENT |
43 |
| 5.6 | THE DEPARTMENT FOR THE ENVIRONMENT AND RURAL AFFAIRS |
45 |
| 6. |
FOCUS ON DEVOLVED GOVERNMENTS |
48 |
| 6.1 | SCOTTISH GOVERNMENT |
48 |
| 6.2 | NORTHERN IRELAND EXECUTIVE |
52 |
| 6.3 | WELSH ASSEMBLY GOVERNMENT |
56 |
| 7. |
PROVIDERS |
59 |
| 7.1 | INTRODUCTION |
59 |
| 7.2 | LEADING PRIME CONTRACTORS ON DBFO/DB PROJECTS |
63 |
| 7.2.1 |
Major Companies | 63 |
| 7.2.2 |
The Importance of FM Providers |
67 |
| 7.3 | LEADING PRINCIPAL CONTRACTING GROUPS |
69 |
| 7.3.1 |
Alfred McAlpine Plc | 69 |
| 7.3.2 |
AMEC Plc | 69 |
| 7.3.3 |
Amey UK Plc | 70 |
| 7.3.4 |
Babcock & Brown | 71 |
| 7.3.5 |
Balfour Beatty Plc | 71 |
| 7.3.6 |
Bouygues UK Ltd | 72 |
| 7.3.7 |
Bovis Lend Lease Ltd | 73 |
| 7.3.8 |
Carillion Plc | 73 |
| 7.3.9 |
Costain Plc | 74 |
| 7.3.10 |
Galliford Try Plc | 74 |
| 7.3.11 |
HBG UK Ltd | 74 |
| 7.3.12 |
Interserve Plc | 75 |
| 7.3.13 |
Jarvis Plc | 75 |
| 7.3.14 |
John Laing Plc | 76 |
| 7.3.15 |
Kier Group Plc | 77 |
| 7.3.16 |
Laing O’Rourke Plc | 77 |
| 7.3.17 |
May Gurney Integrated Services Plc |
77 |
| 7.3.18 |
Miller Group Plc | 77 |
| 7.3.19 |
MJ Gleeson Group Plc | 78 |
| 7.3.20 |
Morgan Sindall Plc | 78 |
| 7.3.21 |
Norwest Holst Ltd | 79 |
| 7.3.22 |
Robertson Group | 79 |
| 7.3.23 |
Rydon Group | 79 |
| 7.3.24 |
Serco Group Plc | 80 |
| 7.3.25 |
Shepherd Building Group Ltd |
80 |
| 7.3.26 |
Sir Robert McAlpine Ltd |
80 |
| 7.3.27 |
Skanska UK Plc | 80 |
| 7.3.28 |
Taylor Wimpey Plc | 81 |
| 7.3.29 |
Wates Group Ltd | 81 |
| 7.3.30 |
Willmott Dixon Group | 82 |
| 7.3.31 |
WS Atkins Plc | 82 |
| 7.4 | CONCLUSION |
82 |
| GLOSSARY OF TERMS |
84 |
|
TABLES AND CHARTS |
| CHART 1 |
NUMBER AND COMBINED CAPITAL VALUE OF PFI PROJECTS SIGNED ANNUALLY – 1996 –2005 |
7 |
| CHART 2 |
MIX BY DEPARTMENT OF PFI SCHEMES SIGNED IN 2005 BY CAPITAL VALUE £M |
9 |
| TABLE 3 |
TOTAL PUBLIC SECTOR CAPITAL BUDGET - DEPARTMENTAL EXPENDITURE LIMITS (£BILLION) |
19 |
| CHART 4 |
CAPITAL VALUE OF SIGNED PFI DEALS BY YEAR OF FINANCIAL CLOSE (£ BILLION) |
26 |
| TABLE 5 |
ADJUSTED CAPITAL VALUE OF PFI MARKET 2003 - 2007 |
27 |
| TABLE 6 |
ADJUSTED AVERAGE PROJECTS VALUE 2003 -2006 |
27 |
| TABLE 7 |
SIGNED PFI PROJECTS BY GOVERNMENT DEPARTMENT 2003 -2007* CAPITAL VALUE (£MILLION) |
29 |
| CHART 8 |
PRODUCT MIX BY GOVERNMENT DEPARTMENT BY VALUE 2006 |
30 |
| CHART 9 |
PRIVATE SECTOR CAPITAL SPENDING ALL 2003-2009 |
31 |
| CHART 10 |
PUBLIC SECTOR CONSTRUCTION OUTPUT 2001-2009 |
32 |
| TABLE 11 |
DEPARTMENT FOR TRANSPORT – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
33 |
| CHART 12 |
PRIVATE SECTOR CAPITAL SPENDING DFT 2003-2009 |
34 |
| TABLE 13 |
DEPARTMENT OF HEALTH – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
36 |
| CHART 14 |
PRIVATE SECTOR CAPITAL SPENDING DOH 2001-2009 |
36 |
| TABLE 15 |
MINISTRY OF DEFENCE – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
39 |
| CHART 16 |
PRIVATE SECTOR CAPITAL SPENDING MOD 2003-2009 |
39 |
| TABLE 17 |
DEPARTMENT FOR CHILDREN, SCHOOLS AND FAMILIES (EX-DFES) – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
41 |
| CHART 18 |
PRIVATE SECTOR CAPITAL SPENDING DCSF 2003-2009 |
42 |
| TABLE 19 |
DEPARTMENT FOR COMMUNITIES AND LOCAL GOVERNMENT (EX-ODPM) – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
44 |
| CHART 20 |
PRIVATE SECTOR CAPITAL SPENDING DCLG 2003-2009 |
44 |
| TABLE 21 |
DEPARTMENT FOR THE ENVIRONMENT AND RURAL AFFAIRS – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
46 |
| CHART 22 |
PRIVATE SECTOR CAPITAL SPENDING DEFRA 2003-2009 |
46 |
| TABLE 23 |
SCOTTISH GOVERNMENT – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
48 |
| CHART 24 |
PRIVATE SECTOR CAPITAL SPENDING SCOTTISH GOVERNMENT 2003-2009 |
49 |
| CHART 25 |
SECTOR MIX BY SECTOR BY VALUE 01/2003-10/2007 |
50 |
| TABLE 26 |
NORTHERN IRELAND EXECUTIVE – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
52 |
| CHART 27 |
PRIVATE SECTOR CAPITAL SPENDING NORTHERN IRELAND EXECUTIVE 2003-2009 |
53 |
| CHART 28 |
SECTOR MIX BY SECTOR BY VALUE 01/2003-10/2007 |
54 |
| TABLE 29 |
WELSH ASSEMBLY GOVERNMENT – PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
56 |
| CHART 30 |
PRIVATE SECTOR CAPITAL SPENDING WELSH ASSEMBLY GOVERNMENT 2003-2008 |
57 |
| CHART 31 |
TYPICAL STRUCTURE OF SPVS |
60 |
| CHART 32 |
TYPICAL STRUCTURE OF A SPV – FINANCIAL INSTITUTION SEPARATE |
61 |
| TABLE 33 |
MAJOR UK CONSTRUCTION CONTRACTORS BY REVENUE (£M) AND SECTOR STRENGTH |
64 |
| TABLE 34 |
LEADING EDUCATION CONTRACTORS AND PRINCIPAL CONSORTIA |
66 |
| TABLE 35 |
CONSTRUCTION AND ENGINEERING COMPANIES IN THE PFI MARKET AND FM OPERATIONS |
68 |
