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PFI Centre of Excellence

The PFI Centre of Excellence is run by NISTA to provide expert support and advice to departments and contracting authorities.

Updates to this page

From:
National Infrastructure and Service Transformation Authority and HM Treasury
Published:
24 August 2017
Last updated:
26 March 2026
Show all updates

  1. Eight new guides and associated toolkits / templates have been added to the PFI Contract Management Programme section. Some existing guidance in this section has been moved to the archive.

  2. A new PFI Decarbonisation Toolkit has been added.

  3. Added links to the following pages: PFI Asset Condition Playbook Insurance guidance for PFI projects Navigating the risks of PFI project distress

  4. Added a link to the page: PFI and PF2 projects: 2024 Summary Data

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

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

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

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

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

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

  11. Addition of PFI Expiry Guidance

  12. Publication of PFI Phase 1 PFI Expiry Health Learnings Report

  13. Discontinuation of LIBOR added and text update

  14. Addition of response to COVID-19

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

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

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

  18. First published.

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.

PFI contracts have delivered 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.

PFI Contract Management Programme

There are around 570 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.

The National Infrastructure and Service Transformation Authority (NISTA) 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.

PFI Expiry

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

PFI Decarbonisation

Local Government Budget Information - Private Finance Initiatives

Data

Data on PFI and PF2 projects as at March 2024

Forms

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

Archived guidance

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

Contents