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The newly established government infrastructure advisory body has warned that ministers will need to \u201clearn from past mistakes\u201d if the revival of Private Finance Initiatives (PFI) is to be part of the upcoming infrastructure strategy.<\/p>\n\n\n\n

Matthew Vickerstaff, Deputy CEO of the National Infrastructure and Services Transformation Authority (NISTA), told the Public Accounts Committee that issues with infrastructure built under previous PFI schemes \u2014 especially in schools \u2014 \u201cstill sound like a drumbeat.\u201d<\/p>\n\n\n\n

He highlighted numerous flaws, including poor acoustics, inadequate lighting, problems with fire doors, defects in refurbishing older buildings, and technical limitations that hinder full use of school facilities.<\/p>\n\n\n\n

\u201cWe\u2019re seeing the difficulties involved in urgently preparing schools to open in September. I can\u2019t say exactly how many PFI-built schools have these issues, but it\u2019s clear the private sector needs to be part of the solution,\u201d he said.<\/p>\n\n\n\n

Chancellor Rachel Reeves is expected to unveil a 10-year infrastructure strategy in June, potentially involving a new model of public-private financing \u2014 including projects in education and healthcare. This would mark the first major wave of PFI contracts since 2018, when former chancellor Philip Hammond halted them, calling the scheme \u201ctoo complex and inflexible.\u201d<\/p>\n\n\n\n

While Vickerstaff expressed \u201cmixed feelings\u201d about a new generation of PFI, he acknowledged that modern contracts could be much more effective:<\/p>\n\n\n\n

\u201cToday, we have much better asset management systems, digital technology, and automated facilities maintenance. That could significantly improve the quality of new contracts, regardless of whether they’re delivered by the public or private sector.\u201d<\/p>\n\n\n\n

He also stressed the need for independent oversight during construction:<\/p>\n\n\n\n

\u201cThe lesson we must learn is the importance of independent quality control. Many issues arose due to inadequate oversight, regardless of who financed the project.\u201d<\/p>\n\n\n\n

Meanwhile, a new PwC report urges the government to explore a fresh public-private partnership (PPP) model, including mutual investment models used in Wales.<\/p>\n\n\n\n

\u201cWe\u2019re seeing strong market interest in renewed forms of public-private financing, especially under tight fiscal conditions,\u201d said Dan Whittle, Deputy Director of Corporate Finance at PwC. \u201cThere\u2019s no need to reinvent the wheel \u2014 it’s about improving risk-sharing, contract management, and building real partnerships.\u201d<\/p>\n\n\n\n

As part of the \u201cFunding the Future of Construction\u201d initiative, the government is also considering new investment mechanisms for critical projects \u2014 from schools and hospitals to housing and prisons.<\/p>\n\n\n\n

The final infrastructure development strategy is expected to be published alongside the spending review in June.<\/p>\n","protected":false},"featured_media":3931,"template":"","class_list":["post-3934","novosti","type-novosti","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\n