Camden council looks likely to be given the government's go-ahead for a housing private finance scheme even though it has only one consortium bidding for the work.
The north London council – whose housing management division recently became only the second in the country to receive a three-star rating from the Audit Commission – has been in discussions with the Office of the Deputy Prime Minister and the Office for Government Commerce since contractor Bovis pulled out earlier this year.

This left just one consortium, led by United House, bidding for the estimated £50m contract to refurbish five tower blocks containing 800 flats.

"The worst possible scenario would have been for us to go back to a nervous [PFI] market," a source at Camden explained, referring to recent private sector concerns about the value of protracted PFI deals.

An ODPM spokesman confirmed the talks were well-progressed but said that, under public procurement rules, it is normally necessary to have at least two bidders for public funds to ensure best value for money is achieved.

The PFI process began in 1999 when eight pathfinder councils were announced and has been bedevilled ever since by delays caused by high bidding costs and uncertain government funding streams. This has since resulted in all of the pathfinders returning to the department to increase the amount of public money needed to encourage private firms to bid for projects.

Camden hopes to reach the next stage of the PFI process by the end of November and to name United House as preferred bidder by "early next year", the source said.

Source

Housing Today