PPP in Local Authorities – 2 June 2003
Trends and Predicted Forecasts
David Locke
PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts
Presentation Outline
4ps
Local authority PPP in context
Emerging issues
Opportunities for local government
Challenges and obstacles
Lessons learned
PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts
4ps Products
ProjectSupport
GatewayReviews
Skills Development
WiderPartnerships
4ps
PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts
Local Government PPP in Context
Currently in ProcurementTotal £17. 5 billion
PlannedTotal £12.3 billion
12
2.2
2.20.80.3
Defence Hospitals Local Government Schools Transport
4
3.3
4
3
2
PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts
£12 billion available until 2006
219 projects approved for funding
Nearly 120 projects signed
Some 85 projects operational
Some use of own resources
Wide range of projects – accommodation, infrastructure, ICT
PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts
Partnerships for ICT services
Partnering arrangements
Development partnerships
Joint venture companies
Joint boards
Other Local Authority Partnerships
PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts
New options for service delivery
Opportunities for step change in services
Encourages focus on outcomes and outputs
Integration of design, build and operations
Additional source of funding
Best value
Role for PFI and Partnerships
PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts
Emerging Issues
Value for money is proven in many sectors
Deal flow developing through bidding rounds
Project values are increasing
Bidders may avoid difficult sectors
Innovation is happening…but slowly
Projects are taking too long to deliver
Deficiencies in estimation of project costs
New joint venture approaches
PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts
Challenges and Obstacles
Procurement capacity in local government
Opportunities for sharing authority resources
Costing and optimism bias
Standardisation and project documentation
Design and sustainability
Revenue support arrangements
Central government arrangements
PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts
Lessons
Importance of sound ‘business case’
Involve private sector at an early stage
Ensure that there is capacity to deliver
Use experience from operational project directors
Prepare - understand the key stages in the process
Use advice sensibly
Be realistic – costing, timetabling, bidder requirements
David Locke
Telephone - 020 7808 1479
Fax - 020 7808 1499
E-mail - [email protected]
Artillery HouseArtillery RowWestminsterLondonSW1P 1RT
www.4ps.gov.uk