The Confederation of British Industry (CBI) and law firm Browne Jacobson are carrying out research to identify the “most effective” public-private partnership (PPP) models to finance infrastructure projects.
The project will explore how the government can implement successful frameworks, following earlier waves of projects such as PFI and PF2, which supported more than 700 public infrastructure projects from the late 1990s until 2018.
Browne Jacobson will work with CBI’s infrastructure working group to “test ideas” with senior business leaders and key government departments, including the Treasury, National Infrastructure and Service Transformation Authority, Office for Investment and the National Wealth Fund.
The research will result in a joint report setting out learnings from previous PPPs and suggesting which models the government could deploy if it is to partner effectively with the private sector.
Accelerating major infrastructure projects
Rain Newton-Smith, CBI’s CEO, said: “The private sector stands ready to support the government’s infrastructure ambitions but really wants to see a less risk-averse approach to partnering with business. By developing the next generation of public-private partnership models, the government could crowd in private capital and accelerate the delivery of major infrastructure projects such as new schools, hospitals and roads.
“Public investment alone will not deliver the government’s infrastructure ambitions, which makes it imperative to explore how a mixed market of new PPP models could deliver the economic and social infrastructure we want to see.”
Craig Elder, partner in public procurement at Browne Jacobson, added: “Government alone lacks all the economic tools to provide sufficient levels of public investment, and policy solutions can help to deliver private finance and skills.
“Our firm’s wealth of experience in advising on PPPs, and our 50-50 split between private and public sector clients, means we are well-positioned to provide input on the legal apparatus required for a new PPP programme.
“This should learn the lessons from the perceived drawbacks of earlier schemes by implementing changes such as greater flexibility, transparency and better value risk transfer.”
