Equity investors have helped to deliver many public sector infrastructure projects via the Private Finance Initiative and have managed them in ways from which the public sector can learn. Against a background of limited information, evidence gathered by the National Audit Office raises concern that the public sector is paying more than it should for equity investment.
Sir John Bourn delivered today the National Audit Office’s 50th PFI/PPP report to Parliament, an update report on the new Darent Valley hospital which, in 1997, had been the first hospital procured under the PFI. Sir John reported that the hospital had been successfully delivered and the Trust had received a reduction in the overall […]
Sir John Bourn, head of the National Audit Office, reported to Parliament today that the seven operational PFI prisons are bringing benefits to the Prison Service. One of the key benefits is that the existence of PFI prisons has encouraged the public sector to improve its performance. For instance, Prison Service management teams have recently […]
Most construction work under the Private Finance Initiative (PFI) is being delivered on time and at the cost expected by the public sector. Central government has generally obtained a much higher degree of price certainty and timely delivery of good quality built assets, compared to previous conventional government building projects, Sir John Bourn, Head of […]
The public sector now has the prospect of securing a bigger share of the gains arising from the refinancing of PFI projects, under new arrangements introduced by the Office of Government Commerce (OGC). The OGC negotiated these measures with the private sector following earlier concerns of the National Audit Office and Public Accounts Committee (PAC) […]
Sir John Bourn, head of the National Audit Office, told Parliament today that the Home Office will get what it wants at a good price from the PFI deal to provide serviced headquarters accommodation for 3450 Home Office and Prison Service staff, but risks remain. The Home Office is due to move into the new […]
Sir John Bourn, head of the NAO, today reported that, following improvements in PFI financing terms, the Norfolk and Norwich University Hospital NHS Trust has shared in the gains from a refinancing of its early PFI hospital contract, but it continues to pay a premium in respect of the financing costs compared to current deals. […]
The National Audit Office has been unable to conclude that the Ministry of Defence has achieved value for money from the procurement phase of its £10.5 billion private finance deal for the Future Strategic Tanker Aircraft (FSTA), according to a report released today. Despite managing the later stages of the procurement well, the MOD’s ability […]
Many NHS trusts need to tackle a range of financial, quality and governance issues if they are to meet the standards required of them to become self-governing foundation trusts by 2014. The Department of Health and the NHS will now have to decide how they will deal with those facing the most severe problems.
Sir John Bourn, Head of the National Audit Office, told Parliament today that the funding competition used to finance the refurbishment of the Treasury building in Whitehall saved the taxpayer £13 million. The competition resulted in savings of 7% of the cost of the deal over the lifetime of the project and assisted greatly in […]
Sir John Bourn, head of the National Audit Office, reported to Parliament today that the new Laganside Courts complex in Belfast, opened in February 2002, is delivering significant benefits. The combination of Crown, County and Magistrates’ Courts has improved upon the previously dissipated nature of court provision in Belfast. Initial reactions from court users have […]
Sir John Bourn, head of the National Audit Office (NAO), told Parliament today that the Prison Service had secured £1 million of the expected £10.7 million increase in returns to shareholders of Fazakerley Prison Services Limited, following the refinancing of the Fazakerley prison contract let under the Private Finance Initiative (PFI). Further refinancings of PFI […]
The redevelopment of the West Middlesex hospital should assist the NHS in delivering modern, high quality healthcare in London, Sir John Bourn, Head of the National Audit Office reported to Parliament today. As a result of letting a 35 year PFI contract with a net present value of £125 million to the Bywest consortium, the […]
On 15 January 2018, Carillion declared insolvency and the Official Receiver, an employee of the Insolvency Service, started to liquidate its assets and contracts. This report focuses on the role of the UK government in preparing for and managing the liquidation of Carillion.
Most (81%) public bodies involved in PFI projects believe that they are achieving satisfactory or better value for money from their PFI contracts according to a National Audit Office report presented to Parliament today, based on the first ever major survey of central government PFI projects in progress. There was generally positive feedback from service […]
Sir John Bourn, head of the National Audit Office, reported to Parliament today that the Royal Armouries* in July 1999 successfully negotiated a revised deal with Royal Armouries (International) plc** (“RAI”) which ensured that the Royal Armouries Museum in Leeds remained open. The revised deal has also made it possible for the future redevelopment of […]
The Building Schools for the Future programme aims to rebuild, refurbish and provide new Information Technology for all 3,500 secondary schools in England by 2020. The Department for Children, Schools and Families (DCSF) underestimated how long it would take to launch the programme and build the schools, though the speed of delivery has compared well […]
The Jobcentre Plus programme rolled out a network of over 800 offices, combining the functions of the former jobcentres and social security offices, and was completed for £314 million less than the original £2.2 billion budget according to a National Audit Office report released today. The project was well managed, particularly the procurement aspect, where […]
The Ministry of Defence has introduced positive changes to how it manages its estate and has invested substantial resources to maintain and improve it. The MoD, however, accepts that it has more work to do to provide a sustainable estate of the right quality, the National Audit Office has today reported to Parliament. The MoD […]