PwC have published a new report Transforming infrastructure investments: A private finance perspective (14 May) aimed at the government to inform policy development and options for future funding for its upcoming 10-year Infrastructure Plan. The report explores the potential for a renewed Public Private Partnership model for blended financing of UK infrastructure, cognisant of the significant need and capital constrained environment. PwC engaged with over 50 stakeholders across the public and private sectors to understand both the barriers to and opportunities for a new generation of PPPs, grounded in the lessons of the past and aligned with today’s market realities.
The report proposes a new model – Infrastructure Partnerships for Growth (IPFGs) that seeks to unlock investment, accelerate delivery, and drive long-term economic and public service transformation.
It was timely for CHP to input into this report and share the lessons learnt from the LIFT Public Private Partnerships. PwC’s report is insightful and presents a compelling case for a renewed targeted adoption of PPPs. It is encouraging to hear there is appetite for a reset and a reformed approach to PPP-led infrastructure delivery in the UK. The recommendation to consider a new PPP model for lower complexity healthcare infrastructure such as diagnostic centres, elective hubs, and community health facilities is helpful and aligns with the direction of travel to support delivery of the development of neighbourhood health services.
The report calls for:
- A renewed openness to PPP’s being used where they make sense, particularly where there is a compelling business case to ‘spend to save’ or ‘spend to grow.’
- Urgent clarity on and commitment to a refined procurement model.
- A clear and credible pipeline of opportunities, backed by political commitment, to justify renewed investment in bid capacity and enable long-term market engagement.
- Centralised expertise within government to support delivery and promote the consistency of the UK public sector as a contractual counterparty.
- A renewed focus on partnership with more collaborative behaviours and a more equitable attitude to risk transfer as a pre-requisite to attract market participation.
Download the PwC report: Transforming infrastructure investment: A private finance perspective (PDF)
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