1. PPP in Local Authorities – 2 June 2003 Trends and Predicted Forecasts David Locke

2. PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts Presentation Outline 4ps Local authority PPP in context Emerging issues Opportunities for local government Challenges and obstacles Lessons learned

3. PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts 4ps Products Project Support Gateway Reviews Skills Development Wider Partnerships 4ps

4. PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts Local Government PPP in Context Currently in Procurement Total £17. 5 billion Planned Total £12.3 billion 12 2.2 0.8 0.3 DefenceHospitalsLocal GovernmentSchoolsTransport 4 3.3 4 3 2

5. PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts £12 billion available until 2006 219 projects approved for funding Nearly 120 projects signed Some 85 projects operational Some use of own resources Wide range of projects – accommodation, infrastructure, ICT

6. PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts Partnerships for ICT services Partnering arrangements Development partnerships Joint venture companies Joint boards Other Local Authority Partnerships

7. PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts New options for service delivery Opportunities for step change in services Encourages focus on outcomes and outputs Integration of design, build and operations Additional source of funding Best value Role for PFI and Partnerships

8. PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts Emerging Issues Value for money is proven in many sectors Deal flow developing through bidding rounds Project values are increasing Bidders may avoid difficult sectors Innovation is happening…but slowly Projects are taking too long to deliver Deficiencies in estimation of project costs New joint venture approaches

9. PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts Challenges and Obstacles Procurement capacity in local government Opportunities for sharing authority resources Costing and optimism bias Standardisation and project documentation Design and sustainability Revenue support arrangements Central government arrangements

10. PPP in Local Authorities – 2 June 2003 – Trends and Predicted Forecasts Lessons Importance of sound ‘business case’ Involve private sector at an early stage Ensure that there is capacity to deliver Use experience from operational project directors Prepare - understand the key stages in the process Use advice sensibly Be realistic – costing, timetabling, bidder requirements

11. David Locke Telephone - 020 7808 1479 Fax - 020 7808 1499 E-mail - david.locke@4ps.gov.uk Artillery House Artillery Row Westminster London SW1P 1RT www.4ps.gov.uk