1.1.1 On 5 December 2012 the Government published "A New Approach To Public Private Partnerships". This policy document sets out the conclusions of the Government's "Call for Evidence and review of PFI" and introduces a new approach for involving private finance in the delivery of public infrastructure and services. This new approach, called PF2, is the Government's successor to the PFI for the delivery of infrastructure and services through public private partnerships (PPPs).
1.1.2 The Government believes that private sector investment, innovation and skills should continue to play a role in the delivery of public infrastructure and services, whether that be through conventional procurement models or through PPPs. Well-structured PPPs can have particular advantages when used for appropriate projects. They can deliver a built and operational asset to time and budget while at the same time providing innovative solutions and effective risk transfer.
1.1.3 PF2 harnesses the key advantages of PPPs and continues to draw on private finance expertise. Mindful of past concerns surrounding PFI, the PF2 model contains a number of reforms designed to eliminate waste, improve efficiency and align public and private incentives; these will promote a new form of partnership to achieve better provision of infrastructure and services. PF2 also responds to economic conditions in its approach to financing infrastructure.