1. Under the PFI the private sector undertakes the design and construction of a prison and thereafter maintains and operates it for 25 years. PFI prisons differ from most other PFI projects as the contractor provides the whole service, including custody, education and healthcare for prisoners, whereas in projects such as new hospitals and schools the public sector remains responsible for the provision of key staff such as nurses and teachers.
2. The use of the PFI has helped sustain an alternative group of prison providers, which has helped to reduce costs and has acted as an incentive to improve prison performance. PFI contractors have brought innovations in three main areas: in the treatment of prisoners; in the more flexible deployment of staff; and in the use of new technology.