PPP deals dwindle
Figures compiled by the Partnerships Bulletin project tracker and the Treasury’s own PFI data have revealed that just 10 deals, worth a combined £2.9bn, were signed between 1 January 2012 and 30 June 2012.
That compares with 17 projects having signed by the same period last year, worth a combined £3.9bn, and 22 projects at a value of £3.6bn in 2010.
Of the deals to have signed this year, six were traditional schemes including standard PFI projects, Building Schools for the Future (BSF) schemes or NHS Lift initiatives. The other four were wider PPPs, which includes local asset-backed vehicles (LABVs) and Offshore Transmission Owner (OFTO) contracts.
In 2011, 12 of the 17 signed deals were the more traditional type of deal, while in 2010 there were 19 Lift, BSF or standard PFI deals agreed.
The research also shows the impact of the government’s ongoing review into PFI, with 23 projects reaching financial close in the second half of 2010, compared to just 14 in the same period last year.
It is unlikely that the market will recover in the second half of 2012, as figures published by Partnerships Bulletin in January revealed there were just 23 PFI schemes left in procurement.
Although alternative PPPs continue to develop, few will be in a position to reach financial close by the end of this year.