1.13 While the capital value of PFI projects has remained very high, there has been a declining trend in the annual value of new deals from 2007. There is little planned new use of private finance in some sectors, such as the hospitals building programme. On the other hand other sectors are starting to emerge, such the increasing number of schools, waste treatment centres and social housing projects.10 By 2009, some 567 PFI projects are in operation with the asset fully constructed.
1.14 During the last three years we have shifted our focus to the operational stage of PFI projects. In 2006, we updated our four pillars approach with a new framework that spanned all the phases of the project and gave more attention to the operational aspects of projects.11 We published a series of reports looking at specific operational issues, including tendering,12 benchmarking and market testing,13 and making changes.14 We have also started to focus more on the way each department is managing its portfolio of private finance projects, reporting on the role of Departments in, for example, the allocation and management of risks in defence projects, the management of the waste PFI programme and the Building Schools for the Future programme.
1.15 We discuss developments in the use of private finance since the credit crunch in part two.
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10 Building Schools for the Future: renewing the secondary school estate, National Audit Office (HC 135, 2008-09); Department for Environment, Food and Rural Affairs: managing the waste PFI programme National Audit Office (HC 66, 2008-09).
11 A framework for evaluating the implementation of PFI projects, National Audit Office (2006).
12 Improving the PFI tendering process, National Audit Office (HC 149, 2006-07).
14 Making changes in operational PFI projects, National Audit Office (HC 205, 2007-08).