05 October 2007
Traditional procurement is delivering more value for money as the discipline of the Private Finance Initiative spreads across the market, the Treasury's head of PFI policy has said.
Gordon McKechnie told a conference on October 2 that anecdotal evidence suggested that improvements in outcomes were now being seen in all types of procurement.
One of the principal justifications for using the PFI has been that it has a better record of delivering projects on time and on budget than other forms of procurement.
However, McKechnie said: 'The positive features of the PFI are now being incorporated in other areas of government procurement.'
He also said the government remained committed to developing the PFI market, citing as evidence the inclusion of £11bn of PFI credits for local government alone in the spending plans for 2008–11.
Meanwhile, a PFI market report from Partnerships UK, published at the conference, showed that although the number of PFI deals signed fell in 2006/07, their value increased, to almost £6.8bn.
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