Lessons from the Private Finance Initiative in the United Kingdom
AbstractThis paper examines the UK experience of PPP/PFI from a value for money perspective. It argues that a rounded view of overall performance has to consider the procurement process, the construction of the asset procured, and the operational performance that follows. Important changes have been made in the UK to the appraisal stage of the procurement process, raising the likelihood of PFI being chosen when it is most likely to deliver value for money. While PFI has evidently performed well in the construction phase, the UK experience suggests a number of prerequisites for achieving value for money in the operational phase. Good contract management is needed to ensure that the risk transfer paid for actually sticks. Provisions to manage changes to contracts in a way that preserves value for money are important. An ability to benchmark the cost and quality of services provided over the long term is also likely to enhance the value for money achieved.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Investment Bank, Economics Department in its series EIB Papers with number 8/2005.
Length: 14 pages
Date of creation: 06 Jun 2005
Date of revision:
Contact details of provider:
Postal: 100, boulevard Konrad Adenauer, L-2950 Luxembourg
Phone: (+352) 43 79 1
Fax: (+352) 43 79 68 895
Web page: http://www.eib.org/efs/
More information through EDIRC
private finance initiative; value for money; United Kingdom;
Find related papers by JEL classification:
- H40 - Public Economics - - Publicly Provided Goods - - - General
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Dudkin, Gerti & Valila, Timo, 2005.
"Transaction Costs In Public-Private Partnerships: A First Look At The Evidence,"
Economic and Financial Reports
2005/3, European Investment Bank, Economics Department.
- G. Dudkin & T. VÃ¤lilÃ¤, 2006. "Transaction Costs in Public-Private Partnerships: A First Look at the Evidence," Competition and Regulation in Network Industries, Intersentia, vol. 7(2), pages 307-331, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna Schumacher).
If references are entirely missing, you can add them using this form.