21. The service nature of PFI contracts often means that the funding for the project lies in more than one TLB. In 2008 Director General Resources and Programmes (now Director Strategy & Resources) advised that the key tool required to be used to capture and preserve all funding for a PFI project is the Project Funding Responsibility Matrix (PFRM)4. This provides the mechanism, in both the TLB and the Equipment Capability (EC) plans, for all sources of funding, including the core allocation for the system/infrastructure, to be identified and agreed by all parties. It also ensures that the parties involved in the planning process are able to ensure that funding is maintained at the agreed level and is available to fund the PFI project at the time it is required.
22. The relevant Resources and Plans Division decides on the need for a PFI project to have a PFRM in place. The Head of Capability or other project sponsor, has the responsibility for the direction of the process to get the PFRM agreed and the Project Team Leader is responsible for its initial preparation and for keeping it up to date. Active direction by RP Divisions and EC colleagues together with regular update activity by the project team are essential to ensure that the PFRM is properly integrated into the approvals process and programming round control total negotiations. A particular risk to be guarded against is the erosion of funding after the approval of the Main Gate Business Case.
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4 RP-10-01-07 (DG/092/08) dated 14 October 2008 - Funding of PPP/PFI Projects