Kirklees council has become the first local authority to take an equity stake in a PFI project.
The contract to refurbish, modernise and manage 20 schools is valued at £313 million, and will run for 30-years.

The metropolitan council has formed a joint venture with facilities management company Jarvis and Barclays Infrastructure Fund. The stake it has taken, of around £500,000, entitles the council to take a seat on the board of the joint venture.

The council will take a share of the profits or losses of the deal. It is hoped that this will aid a closer working relationship between the council and service provider.

The joint venture will invest £59 million in a modernisation programme over three years. Jarvis will then provide services including building and grounds maintenance, security, cleaning, caretaking and transport.

Former PFI Treasury taskforce Partnerships UK supported the development of the model, which can be copied alsewhere.