The NAO has concluded in a new report published today that the tendering process for PFI projects needs improvement. During 2004-2006, PFI projects took an average of almost three years (34 months) to tender. Although there was substantial variation between sectors with schools, in particular, taking significantly less time to close deals (25 months), the […]
The Department for Trade and Industry successfully transferred risk in the PFI contract to build and manage new facilities for the National Physical Laboratory and protected the taxpayer from bearing the majority of the costs of the project’s problems. Delays during the construction of the new facilities meant that the DTI did not secure the […]
An update report by the NAO identifies that the government has secured gains of £137 million from PFI debt refinancings under new arrangements introduced by the Treasury in 2002. These new arrangements followed previous reports by the NAO and the Public Accounts Committee that highlighted the opportunities for the private sector to benefit from refinancing […]
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. […]
Sir John Bourn, head of the National Audit Office, reported today that the Local Improvement Finance Trust (LIFT) initiative, launched in 2001, is an effective means of improving primary health and social care. The LIFT model has a number of strengths: it takes a long term strategic approach to local health provision which combines the […]
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, today reported to Parliament on the £1.2 billion expansion of the PRIME contract, that DWP had succeeded in getting the deal it had set out to achieve. The decision to proceed via a non-competitive negotiation with LST was the right one. DWP introduced competitive tension into […]
The National Audit Office reported today that there was limited assurance that the price of the three Tube PPPs was reasonable, and some uncertainty about the eventual price although any price revisions have to meet tests of economy and efficiency. The complexity of the PPPs resulted from the scale of the deals, innovative output specifications […]
The National Audit Office reported today that there was limited assurance that the price of the three Tube PPPs was reasonable, and some uncertainty about the eventual price although any price revisions have to meet tests of economy and efficiency. The complexity of the PPPs resulted from the scale of the deals, innovative output specifications […]
Sir John Bourn, head of the National Audit Office today reported to Parliament on the £1.5 billion Strategic Transfer of the Estate to the Private Sector (STEPS) PFI deal entered into by Inland Revenue and Customs and Excise with a private sector consortium known as Mapeley STEPS. The deal incorporates the transfer of the ownership […]
Sir John Bourn, head of the National Audit Office, reported to Parliament today that GCHQs new headquarter building, which will cost GCHQ about 46 million a year, and which was procured through a PFI deal, was on track to be delivered on time and within its finally determined budget; and it was handled well overall. […]
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 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 […]
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 […]
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 […]
A national standard IT system for magistrates’ courts has been under development for over ten years but is still not complete, Sir John Bourn, head of the National Audit Office, reported to Parliament today. The cost of the project has increased substantially since a PFI deal was signed in 1998. IT systems in magistrates’ courts […]
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 […]
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 NAO, told Parliament today that the Ministry of Defence (the MOD) is making progress towards delivering an Initial Operating Capability for the Apache helicopter in August 2004 but that risks remained. The MOD is buying 67 Apache helicopters through a £3 billion prime contract with Westland Helicopters Ltd. The […]