Private finance projects: promoting UK expertise

PFI, AFP, PPP, or whatever initials we wish to apply to the process, is a global phenomenon. The common feature is that private sector capital is put at risk in the provision of a public service.  
 
Whereas the UK was one of less than a dozen countries that had Public Private Partnership (PPP) capabilities in the 1990s, over 100 nations are trying to introduce PPPs and it is estimated that up to 40 now have some form of governmental body to oversee the process. Both the United Nations and the European Union now endorse the use of PPPs to achieve global development goals. So the world-wide competition for projects is intense.  
 
As an example, I heard today how one set of UK bidders were preceded by the Swiss and followed by the Italians. The rivals had well-honed presentations. But where was the real, hands-on, practical experience?
 
UK-based practitioners have unique strengths no other nation can match. As a pioneer in this field, the UK’s unrivalled experience means that our practitioners, of all nationalities, have a wider and deeper range of knowledge to draw upon, based on historically the largest and most wide-ranging set of public service projects in the world. Furthermore, the global nature of the market means that we now have greater international exposure than ever before, especially in those jurisdictions where the UK model, or at least the philosophy that underpins it, have been adopted.
 
Of course, the lessons of the past, the setting of new best practice levels and the changing economic and political conditions all mean that things move on. For example there is a review of the Private Finance Initiative (PFI) in the UK right now. This is not unusual. PPPs in every part of the world come under close scrutiny as they involve large amounts of public money and many of the UK Treasury’s questions would be familiar to those faced by the ones set in Australia over last summer.  
 
Getting the public-policy framework correct is one of TheCityUK’s priorities when dealing with the new markets; and we will be taking part in the Treasury’s PFI review here at home too. We are keen to meet members – both practitioners and public affairs executives – to help inform our response to the Treasury. This will focus on UK practitioners’ international experience of delivering PPPs from an international perspective. We will explore three key themes in addition to the specific questions posed by the Treasury:
 

• the way in which PFI practitioners in the UK have learned from past experience and the effect of this on the evolution of PFI over time;
• the way in which PFI has been enhanced and improved through members’ international experience, and
• evidence of UK PFI practitioners operating at the cutting-edge of PFI developments.

 
If you want to take part in our review then contact my colleague Boaz Nathanson to schedule an interview or leave a contribution.
 
We already work closely with the British government through the Foreign and Commonwealth Office, UK Trade & Investment and the Treasury/Infrastructure UK. We help to bring PPPs to new markets and to sell UK know-how to existing ones. PPPs are a cornerstone of the Lord Mayor of London’s international programme, and will be discussed in the forthcoming visits to Turkey and the Gulf States. We are also supporting the Global Infrastructure Leadership Forum in London.
 
Overall, our members stand to benefit from the international demand for infrastructure. An example of our added value comes from recognising how PPPs can transform the public sector, in any country, from being mere facilities managers into true service providers. Whether it is India, Indiana, or Indonesia, there is a market for UK-designed PPPs, and a role for TheCityUK’s members.