Critical success factors in PFI projects

The Private Finance Initiative (PFI) in the UK is increasingly being adopted as a procurement strategy to deliver infrastructure (and other privatized) projects in the UK. Privately financed projects allow governments to procure assets when needed (such as prisons, roads, hospitals) without burden to public capital expenditure. Projects procured in this way depend upon a long-term reliable income stream. This paper argues a case that there is a need to identify the primary criteria which need to be achieved in each PFI project if the future of such an initiative is to be assured. The paper analyses existing interpretations of Critical Success Factors (CSFs) to assist in establishing a new definition addressing the CSFs for PFI projects. The main factors considered to be crucial to PFI success were identified from a wide literature review. The opinion of clients, contractors, financiers, operators, and others involved in PFI was sought in relation to these factors through a pilot study. An analysis of the responses identified fourteen factors to be accepted as critical to the success of PFI projects. Following the pilot study these are submitted to be potential critical success factors for any PFI project and each CSF is defined.