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PFI projects on the up

Many with large IT and comms components

Tags: pfi

By Tony Hallett

Published: 24 April 2006 11:55 GMT

The number of private finance initiative (PFI) contracts signed in the UK - many for large projects with IT at their core - is set to increase.

Research out from IFSL (formerly British Invisibles) shows that by the end of last year, 780 PFI projects with a capital value of more than £53bn had been inked. This is set to increase by about half as much again, to a total of £80bn, by 2010.

The year 2000 was the peak for new PFI contracts: 112 were signed then.

-- IFSL figures

The year 2000 was the peak for new contracts: 112 were signed then. The total nearly halved to 61 in 2003.

Large projects, especially the Channel Tunnel and London Underground, tend to skew the PFI numbers but excluding these, average deal size has been £42m, IFSL said.

The most active government departments using PFI as a means to fund and carry out projects are Transport, Health, Defence and Education.

Prominent projects with a technology component include roads, MOT computerisation and immigration.

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