The Private Finance Initiative: Why value for money remains elusive

It is argued that governments alone are not able to procure the volume of infrastructure required to establish and maintain sustainable communities. PFI is used as a tool to develop projects that would otherwise not come to fruition. It seems to be promoted by political parties in power, but criticised by those in opposition. The continuing debate is about value for money, and whilst attempts are made to measure this facet, definitive judgments seem elusive. High bidding costs, including legal and consultancy fees are deterrents to the use of PFI. Evidence suggests that PFI provides greater cost and time predictability than other procurement routes. Whilst there are many flagship examples of resounding success, there are also some high profile failures. This study is based on a literature review. It assesses key facets of the PFI process, such as value for money and governments' addiction to the PFI ethos. There is an appraisal of competing views in an international context, and a review of whether some types of projects are more suited to PFI than others. The paper forms part of an ongoing PhD study to appraise investment in health and safety in a variety of procurement routes.