The effect on the number and timing of projects

2.6  PFI projects were advertised and signed at a slow rate prior to 2004. This rate has now increased (Figure 10 overleaf), reflecting both the improvements in programme management and the increasingly tough landfill restrictions that local authorities face.

2.7  The Department expects a substantial number of further contracts to be let over the next five years (Figure 11). Although PFI will continue to play a significant role in delivering these projects, not all of these will necessarily be funded by PFI. For example, a local authority can raise its own finance, known as Prudential Borrowing, if it can prove that it can repay the loan through its own resources. The Local Government Act 2003 entitles authorities to borrow on this basis without the consent of central government.

Figure 10 overleaf

2.8  Local authorities are developing projects in greater numbers than in previous years: at summer 2008, nine projects were in procurement and a further 19 had submitted a business case, or expressed an interest in using PFI. Projects yet to start procurement will not contribute significantly to landfill diversion in time for 2013, though they will make a substantial difference to the 2020 target.