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How PPP delivers an efficient, effective public estate

Monday 3 June 2019

Nigel Skinner, project director at Kajima Partnerships, outlines why the Irish market could evidence the fact that public-private partnerships (PPP) continue to deliver value for money in providing an effective public estate

Since their conception over 20 years ago until 2016, public-private partnerships have funded £56bn of private sector investment in over 700 British infrastructure projects.

Recent political commentary, however, particularly in the wake of the collapse of a high-profile PFI private sector supplier, has called for the UK’s public sector to take back control of its buildings, moving away from private sector collaboration. But the question remains; is the PPP model really broken?

This negative perception of the financing model culminated last year when the Chancellor, Philip Hammond rejected any future private finance initiatives (PFI) – a form of PPP.

The Irish Government, however, continues to use PPP models as a key route to deliver public infrastructure across the whole of Ireland – but only where it demonstrates clear value for money.   This focus on the value proposition enables the Irish government to be selective in its use of the PPP model as a key investment tool, only applying it to projects where it is clearly the most appropriate commissioning option. This ‘choice’ ensures that many of the mistakes associated with UK public sector developments – where in many cases PPP was the only option – can be avoided.

To read more of Nigel Skinner's insight and learn how private-public partnerships can be a cost-effective way for the public sector to engage with the private sector, click here- https://www.pbctoday.co.uk/news/planning-construction-news/ppp-public-estate/57851/