1 A range of procurement options for public services is available to Government, and the Private Finance Initiative (PFI) is one of these. Some projects may not be suitable for PFI. An example is where there is uncertainty over the requirements at the outset. The Government provides advice and guidance on which projects are suitable for PFI. For others, alternative procurement options exist which need to be assessed taking account of value for money and project circumstances.
2 Private Finance accounts for a small but significant amount of Government net investment, mainly in the Education, Health, Transport and Defence sectors. The capital value of forthcoming PFI deals is expected to be £13 billion1 so the performance of PFI projects during the construction phase is an important issue. However, this report, in focusing on PFI construction performance, does not assess or seek to evaluate the value for money of PFI as a whole, nor make comparison with the construction performance of other methods of procurement.
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1 The Treasury's 2009 Budget - http://www.hm-treasury.gov.uk/bud_bud09_index.htm