38. The government needs to take a more strategic and streamlined approach to managing PPP projects. Too many agencies have responsibility for large-scale service investment decisions, and providers are often deterred by the fragmented approach to partnership that prevails.
39. CBI believes there should be one body of PPP expertise to coordinate all private investment activity and allow for a stronger line of accountability for both taxpayers and providers, whose involvement depends on a high-quality management structure that is absent in many markets. It would also reduce the costs incurred by duplicating activity in each department.
40. Projects using private finance to deliver public services have at times been hampered by poor leadership in government, which has added to the time and cost of projects.18 In addition, the private sector has had to learn how best to operate within the complex matrix of multiple policy objectives. Clearer commitments are needed from both local authorities and central departments to indicate the direction of long-term investment decisions in all public service markets.
41. Complex procurement requires complex skill sets, and PFI is no exception. Specific skills and experience are needed at all stages, from initial needs analysis and service design, to procurement and contract initiation, to performance management of suppliers and decommissioning/retendering of services.
42. Public sector skills in a range of areas including project management, commissioning, procurement, and contract management need to improve to allow projects involving private finance to deliver the outcomes that they are capable of. The creation of a hub of expertise for complex projects would help ensure the skills and experience needed to close crucial deals are at the required level.
43. The government should also commit to conducting a robust and quantitative evaluation of public service outcomes in privately financed projects compared with those procured through the traditional route. In this way, genuine comparisons would be possible and policymakers could ascertain which delivery models provide greatest value for money across the range of sectors.
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18 "Understanding the Public Services Industry: How big, how good, where next?" De Anne Julius Review, BERR, July 2008