6. There is generally good information on the holders of PFI equities, but little information on the terms in which PFI equities are traded or how they are funded. Public authorities will normally be aware of any change in the ownership of a project company, but will not normally be provided with details of the terms of the change of ownership, including how much was paid for the shares. The Treasury publishes a database on PFI share-ownership on its website.109
7. It is also difficult for the public authority to assess how the shares are financed, including whether they are leveraged or securitised, unless such information is published by the shareholders (for instance as part of a portfolio brochure or market return).
8. Most of what happens in the secondary market falls outside the remit of the National Audit Office. Whilst the National Audit Office has access rights to the documentation of PFI sub-contractors (where they relate to the accounts of a body we audit), we do not have access rights to documents belonging to shareholders. Our information on the secondary market is thus restricted to data collected from public authorities and contractors, as well as our general monitoring of the sector.
9. Nonetheless, the National Audit Office has an interest in the effect of the secondary market on the value for money of PFI contracts. We have been monitoring the development of the secondary market for some time. For example, we are currently undertaking a study on the Performance and Management of Hospital PFI Contracts, in which we are asking NHS Trusts for details of how any changes in share ownership may have affected the contractors' performance.
10. Our analysis of Treasury's data on share-ownership indicates that the market is consolidating. Since February 2008 there have been slightly over 50 transactions in the secondary market, with around 30 companies purchasing shares. Amongst these, two investment funds have been particularly active in buying shares: Semperian (formerly known as Trillium PPP Investment Partners) and Barclays Integrated Infrastructure.
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109 http://www.hm-treasury.gov.uk/d/pfi_equityholders.xls