1. In March 2006 the Treasury published a report on PFI: strengthening long-term partnerships ("the report"). This publication set out an update on how the Private Finance Initiative (PFI) is being used across government together with various proposed actions by the government to support the PFI's role in delivering better public services. On 11 December 2006, the Committee of Public Accounts took evidence on the Comptroller and Auditor General's report Update on PFI debt refinancing and the PFI equity market (HC1040 2005-06). The Committee asked the National Audit Office to prepare a note considering the implications on the work of the Committee, and the way the Committee looks at PFI cases.
2. In the report, the Treasury
- provided background on the Government's approach to PFI;
- reported back on its research into the performance of over 100 operational projects and identified areas for policy development relating to operational issues;
- identified areas in which to improve PFI procurement including retention and development of procurement expertise and improved development of projects within the public sector before launch to the market;
- identified some refinements to the use of private finance to further improve its flexibility and transparency.
In preparing the report the Treasury consulted with the National Audit Office (NAO) on the NAO's experience of the issues to be covered in the report.