Download the report [1.1MB] from European Services Strategy Unit, by Dexter Whitfield
74 projects – 11 Buyouts, 20 terminations and 43 with major problems, plus many bailouts. 28% of PFI/PPP contracts by capital value have been to subject to buyout, termination or major problems. The public cost of buyouts, bailouts, terminations and major problem contracts is £27,902m, when combined with the additional cost of private finance, interest rate swaps and higher PFI transaction costs. This could have built 1,520 new secondary schools for 1,975,000 pupils, 64% of 11-17 year old pupils in England. The UK’s 6.8% ratio of buyout and terminated contracts is higher than the 5.4% average of World Bank projects in developing countries for terminated contracts. This ESSU Research Report explains the causes and fundamental flaws in the PFI/PPP model.
As described in this CommonSpace article, this report is a UK-wide analysis of the PFI/PPP model. It’s a great resource to provide a succinct economic case against the use of PFI/PPP models – and can be used to challenge existing contracts (as he recommends!) as well as use to lobby against any future contracts enacted through this method.