1.3.1 PF2 takes an important new approach to:
• the investment of public sector equity in the PPP;
• the restriction of scope of Contractor services to Hard FM;
• the flexible management of soft services, within the PPP framework, by the Authority;
• the transparency of operational and financial information on PF2 projects (but without overburdening the resources of the Contractor);
• the retention of risks by the Authority where more appropriately managed by the public than the private sector; and
• the strengthening of the new PPP structure so as to attract new sources of investment and finance to the market.
1.3.2 This guidance can thus be seen as part of a comprehensive overhaul of the way privately financed infrastructure projects and services are structured, procured and operated, in which:
• "A New Approach to Public Private Partnerships" sets out the new policy approach;
• this guidance sets out the new contractual approach;
• "Standardised Lean Sourcing Process for PF2" sets out the new procurement approach;
• "Major Project Approval and Assurance Guidance" sets out an updated assurance and approval approach, and
• Chapter 7 of "A New Approach to Public Private Partnerships" proposes a new value for money approach.
All of these combine to forge a better relationship with our private sector partners, better outcomes for our public bodies, and better services for the general public.
Key elements of the new PF2 model are set out below.