The Government has announced that the Private Finance Initiative (pfi) is to be expanded in the coming two years. Chief secretary to the Treasury, Paul Boateng, announced that a further £9 billion worth of deals are expected to be signed in health, education and housing.

Despite strong trade union opposition, Gordon Brown also plans to extend PFI into sustainable energy, urban regeneration, waste recycling and leisure facilities, while developing its use in housing.

Outlining the plans, Boateng stated that a National Audit Office report has shown that 75% of PFI projects have been delivered on time and all were within budget. This compares to previous project completion rates of 73% running over cost and 70% being late.

Up to April 2003 PFI deals to a £35 billion capital value had been signed and annual capital investment is to rise from £3.7 billion last year to over £5 billion this year.

Source

Electrical and Mechanical Contractor