1 Build on models that other countries have tried and tested

It makes sense to build on what works - for example, the success of the PFI in the UK has been integral to the modernisation of public services and is helping to ensure taxpayers receive better value for money. As one of the most common PPP models, this is a clear lesson for all those involved in developing PPP markets.

A recent CBI report on the PFI shows there are clear lessons to be learnt from its success:

■ Linking design and service delivery creates long-term benefits

■ Sharing risk creates incentives to succeed

■ Increased financial transparency and accountability

■ Improved service user and staff satisfaction

■ A higher priority is given to environmental sustainability.26

Just as many governments are looking to the UK model for guidance in designing and developing PPP markets, the UK has learnt from other countries. For example, private involvement in the UK prisons sector was developed on the lessons learnt from the US and Australian experiences. In America, prison contracting on a larger scale emerged in the early 1980s. Previously, private involvement was limited to providing services such as laundry, cleaning and catering. Integrating design and management contributed to innovative services delivered on time and within budget. In the UK, the introduction of radial prison design, which relies on clear lines of sight and control rooms at the centre of radiating wings, technology such as CCTV and electronic keys helped deliver operational efficiencies. Japan has also learnt from this and will be using electronic tagging in its first PFI prison, which will help reduce costs signifcantly.27

Governments are also increasingly interested in moving beyond purely infrastructure and construction PPPs towards those that include service delivery and non-asset based partnerships. In the area of active labour market policies - known in the UK as welfare to work - A4e and Working Links have been using their UK experience to advise governments and deliver programmes overseas, highlighting the ongoing development of PPP models.