Collection

PFI Centre of Excellence

The PFI Centre of Excellence is run by the Infrastructure and Projects Authority (IPA) to provide expert support and advice to departments and contracting authorities.

• From: Infrastructure and Projects Authority and HM Treasury
• Published: 24 August 2017
• Last updated: 15 November 2023 — See all updates

A Private Finance Initiative (PFI) is a long-term contract between a private party and a government entity where the private sector designs, builds, finances and operates a public asset and related services. In a PFI contract the private party bears the risks associated with construction and maintenance and management responsibility, and remuneration is linked to performance.

PFIs have delivered around £56 billion of private sector capital investment in over 700 UK infrastructure projects. These include new schools, hospitals, roads, housing, prisons, and military equipment and accommodation.

PFIs transfer delivery, cost and performance risk to the private sector – this protects the public sector from delays, cost overruns and poor performance.

Policy

The Government announced at Budget 2018 that it would no longer use PF2 (the most recent model of the Private Finance Initiative) for new government projects. Existing PFI and PF2 contracts will not end because of this announcement. Archived documents including the retired PF2 policy and standardisation of PF2 contracts are available at the National Archive.

• Private Finance Initiative (PFI) and Private Finance 2 (PF2): Budget 2018 brief
  • 29 October 2018
  • Policy paper

PFI Contract Management Programme

There are around 580 current PFI contracts (excluding those in the devolved administrations) and the PFI Centre of Excellence, run by the IPA, provides expert support and advice to departments and contracting authorities.

IPA has set up a PFI Contract Management Programme - a collaboration between the centre, departments and the functions - to manage the risks in operational PFI projects.

The aim of the Programme is that contracting authorities have the capabilities, knowledge and tools they need to manage their PFI contracts effectively and to engage confidently with their private sector partners.

The Programme comprises four projects:

• Contract Expiry - managing the risks of contract expiry and ensuring value for money as contracts end
• Improving Operational Performance - driving improved operational performance and better approaches to contract management across the PFI portfolio.
• Building Capability - building capability through systems learning, guidance and training
• Advice & Support - providing expert support and advice to departments and contracting authorities

• Privacy Notice for PFI Centre of Excellence
  • 3 October 2023
  • Guidance
• Phase 1 PFI Expiry Health Learnings Report
  • 16 December 2021
  • Policy paper
• Discontinuation of London Interbank Offered Rate
  • 28 July 2022
  • Guidance
• Managing the Risks of PFI Contract Expiry
  • 16 August 2021
  • Policy paper
• Supporting vital service provision in PFI/PF2 contracts during the COVID-19 emergency
  • 25 June 2020
  • Guidance

PFI Expiry

Guidance, toolkit items and other documents relating to PFI contract expiry.

• A Guide to PFI Expiry Health Checks
  • 20 July 2023
  • Guidance
• Preparing for PFI contract expiry
  • 28 February 2022
  • Guidance

PFI Decarbonisation

• Decarbonisation of Operational PFI Projects
  • 5 July 2023
  • Guidance

Local Government Budget Information - Private Finance Initiatives

• Local Government Budget Information - Private Finance Initiatives
  • 29 June 2023
  • Guidance

Data

Data on PFI and PF2 projects as at 31 March 2023

• PFI and PF2 projects: 2023 Summary Data
  • 15 November 2023
  • Transparency data

Forms

Forms and instructions specific to PFI/PF2/PPP arrangements.

• PFI/PF2/PPP forms
  • 7 December 2018
  • Form

Archived guidance

Archived documents supporting project and contract managers are available for operational taskforce and Treasury taskforce publications.

• PFI/PPP finance guidance
  • 7 December 2018
  • Guidance
• Code of conduct for operational PFI/PPP contracts
  • 24 February 2021
  • Guidance
• Making savings in operational PFI contracts
  • 28 November 2018
  • Guidance
• PFI/PPP procurement and contract management guidance
  • 28 November 2018
  • Guidance
• DAO 02/14 early termination of contracts
  • 28 November 2018
  • Guidance
• PPP Policy Note: Early termination of contracts
  • 28 November 2018
  • Guidance

Published 24 August 2017
Last updated 15 November 2023 + show all updates

1. 15 November 2023

   Added a link to the page: PFI and PF2 projects: 2023 Summary Data

2. 3 October 2023

   Added a link to the page: Privacy Notice for PFI Centre of Excellence

3. 21 July 2023

   Updated the Data list collection to include the latest publication: Private Finance Initiative and Private Finance 2 projects: 2022 summary data

4. 20 July 2023

   Added a link to the page: A Guide to PFI Expiry Health Checks

5. 5 July 2023

   Added a link to the page: Decarbonisation of Operational PFI Projects

6. 29 June 2023

   Added a new section: Local Government Budget Information - Private Finance Initiatives

7. 28 February 2022

   Addition of PFI Expiry Guidance

8. 16 December 2021

   Publication of PFI Phase 1 PFI Expiry Health Learnings Report

9. 10 February 2021

   Discontinuation of LIBOR added and text update

10. 2 April 2020

    Addition of response to COVID-19

11. 30 May 2019

    Updated with 'Private Finance Initiative and Private Finance 2 projects: 2018 summary data'.

12. 28 November 2018

    Updated with 'Private Finance Initiative (PFI) and Private Finance 2 (PF2): Budget 2018 brief'.

13. 29 March 2018

    Link to 'Private Finance Initiative and Private Finance 2 projects: 2017 summary data' added

14. 24 August 2017

    First published.