The private finance initiative: The procurement process in perspective

Since the introduction of the Private Finance Initiative (PFI) in 1992, the UK government has been attempting to procure infrastructure projects through private sector participation by way of public-private partnerships. This piece of work examines the key stages of the procurement process and looks at the extent to which the respective stages of the process up to financial close contribute to the risk burdens that confront the participants and how far the various institutional frameworks and policies have helped in minimizing these risk burdens. Based on evidence from the findings of a survey the research has demonstrated that it is at the tender evaluation and the negotiation stages that the risk burdens are exacerbated most. The conclusion drawn is that though the institutional frameworks and policies have helped to improve the process there is the need for further skills development.