The government is expected to reveal plans for a “son of PFI” policy in the autumn, Building reported.
The plans, which will provide a blueprint for funding major projects with limited government resources, could be out as early as the party conference season.
A senior source told Building: “We’re being told privately to expect a ’son of PFI’ announcement in the autumn. It will be more standardised and procurement will have to be slicker, taking advantage of economies of scale. But exactly how it will be structured remains unclear.”
Meanwhile a new report from the Confederation of British Industry has highlighted the benefits of the controversial policy, Construction News reported.
The boost to PFI comes hot on the heels of the recent damning report by the influential Treasury Select Committee of MPs which branded the model “poor value for money”.
The CBI countered that PFI was “absolutely essential” for investment in public building projects. The body is now calling on the government to publish a long term pipeline of projects for investors.
Dr Neil Bentley, CBI deputy director-general, said: “Given the current state of the public finances, private finance must be an option if the public is to continue to access quality new schools, hospitals and other infrastructure at an affordable price.
“We want the Government to publish a clear, long-term pipeline of projects so that investors can have the confidence to put their money in the UK. Infrastructure spending also offers one of the biggest bangs for buck in terms of additional economic activity, so this is a chance to generate jobs, growth and build for the future.”
The CBI’s report, “Building Strong Foundations: Financing UK Infrastructure”, highlights the benefits that PFI has already delivered for taxpayers, through better designs, sharing risk and including maintenance in the overall cost of the project.
The government is also known to be considering other types of public private partnership to allow continued private sector investment, including the regulatory asset base model, in which the government effectively uses a regulator to guarantee a future income stream for a service.
