... the project's risks, some of the responsibility will remain within the public sector. The main reason behind the push for more PFI type projects is that it delivers value for money (VfM), where VfM is the optimum combination of whole life cost and quality to meet the user's requirement, and does not always mean choosing the lowest cost bid. The introduction of PFI within the UK has meant that more capital projects have been undertaken for a given level of public expenditure and public service capital projects have been brought on stream earlier. As at the 1st December 2004 there has been almost 758 PFI deals signed with a total capital value more than £61.5 billion. This increased level of activity will be paid for by higher public expenditure in the future, as the stream of payments to the private sector grows. PFI projects signed to date have committed the ...

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