Current challenges facing PFI/PPP procurement
Morley, Andrew W. and Duncan E.W. Wainscott
The Private Finance Initiative concept is constantly under close scrutiny from its opponents and detractors but, in the UK, official figures show that it has steadily outperformed the traditional procurement methods of the last century. However, recent figures suggest that, of over 700 PFI infrastructure projects procured, 12% were delivered late (Source: HM Treasury) and 22% were over budget (Source: National Audit Office). Therefore, whilst PFI may be one way forward for the provision of infrastructure in the emerging economies, and for the maintenance of it in mature economies, the associated risks must be identified and managed. Poor performance might not have a major effect in a mature economy but the impact on a less developed or emerging economy could be severe. The project, in its formulation phase, could sit with a Client who is relatively inexperienced in the field. It is the Clientts responsibility to short-list and appoint, via a robust pre-qualification procedure, advisors who can provide the appropriate Commercial Management expertise and experience. In short, by properly resourcing a proposed project in its infancy all parties involved will be able to apply their particular expertise to develop the project and reduce the overall risk to its successful completion.
Event: XXIII International FIG Congress : Shaping the change
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