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PPP in Local Authorities – 2 June 2003 Trends and Predicted Forecasts

PPP in Local Authorities – 2 June 2003 Trends and Predicted Forecasts. David Locke. Presentation Outline. 4ps Local authority PPP in context Emerging issues Opportunities for local government Challenges and obstacles Lessons learned. 4ps Products. Skills Development. Project Support.

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PPP in Local Authorities – 2 June 2003 Trends and Predicted Forecasts

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  1. PPP in Local Authorities – 2 June 2003Trends and Predicted Forecasts David Locke

  2. Presentation Outline • 4ps • Local authority PPP in context • Emerging issues • Opportunities for local government • Challenges and obstacles • Lessons learned

  3. 4ps Products Skills Development Project Support 4ps Gateway Reviews Wider Partnerships

  4. Local Government PPP in Context Planned Total £12.3 billion Currently in Procurement Total £17. 5 billion 0.3 0.8 2 4 2.2 3 2.2 12 3.3 4 Defence Hospitals Local Government Schools Transport

  5. £12 billion available until 2006 • 219 projects approved for funding • Nearly 120 projects signed • Some 85 projects operational • Some use of own resources • Wide range of projects – accommodation, infrastructure, ICT

  6. Other Local Authority Partnerships • Partnerships for ICT services • Partnering arrangements • Development partnerships • Joint venture companies • Joint boards

  7. Role for PFI and Partnerships • New options for service delivery • Opportunities for step change in services • Encourages focus on outcomes and outputs • Integration of design, build and operations • Additional source of funding • Best value

  8. Emerging Issues • Value for money is proven in many sectors • Deal flow developing through bidding rounds • Project values are increasing • Bidders may avoid difficult sectors • Innovation is happening…but slowly • Projects are taking too long to deliver • Deficiencies in estimation of project costs • New joint venture approaches

  9. Challenges and Obstacles • Procurement capacity in local government • Opportunities for sharing authority resources • Costing and optimism bias • Standardisation and project documentation • Design and sustainability • Revenue support arrangements • Central government arrangements

  10. Lessons • Importance of sound ‘business case’ • Involve private sector at an early stage • Ensure that there is capacity to deliver • Use experience from operational project directors • Prepare - understand the key stages in the process • Use advice sensibly • Be realistic – costing, timetabling, bidder requirements

  11. David Locke Telephone - 020 7808 1479 Fax - 020 7808 1499 E-mail - david.locke@4ps.gov.uk Artillery House Artillery Row Westminster London SW1P 1RT www.4ps.gov.uk

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