pre-announcement of uk’s call for evidence on pfi November 15, 2011Posted by Bradley in : consultation , trackback
The UK plans to make a call for evidence on December 1 with a view to amending the private finance initiative. Here’s what the pre-announcement says:
The Government will expect a new delivery model to draw on private sector innovation but at a lower cost to the taxpayer, offering better value for our investment in public services. The Government’s approach to reform will be guided by the following principles, to create a model that:
is less expensive, and that uses private sector innovation to deliver services more cost effectively;
can access a wider range of financing sources, including encouraging a stronger role to be played by pension fund investment;
strikes a better balance between risk and reward to the private sector;
has greater flexibility to accommodate changing public service needs over time;
maintains the incentive on the private sector to deliver capital projects to time and to budget and to take performance risk on the delivery of services;
delivers an accelerated and cheaper procurement process; and
gives greater financial transparency at all levels of the project so that the public sector is confident that it is getting what it paid for, and that the taxpayer is sure it is getting a fair deal now and over the longer term.
Do they really want to encourage pension funds to invest in pfi projects while making investment in such projects less profitable and riskier?