AROUND THE WORLD, PRIVATE SECTOR FINANCE IS RESPONDING TO THE NEEDS OF NATIONAL GOVERNMENTS AND PUBLIC AUTHORITIES TO PROVIDE NEW SOCIAL INFRASTRUCTURE. THESE COUNTRIES ARE GENERALLY FOLLOWING THE PRIVATE FINANCE INITIATIVE MODEL DEVELOPED IN THE UK.

In the UK, this form of public sector procurement has become well established during the last decade through the Private Finance Initiative (‘PFI’) and Public Private Partnerships (‘PPP’) programmes. These programmes have led to more than £50 billion of new investment being committed to a wide range of public services from transport systems to healthcare and housing. This use of private sector funding has allowed public authorities to redress previous under investment in capital works programmes.

PFI has a proven record of delivering capital works projects on time and to budget and crucially, investors’ long-term returns are linked to the successful delivery and operation of public buildings and transport systems.

PFI has progressively developed over the last decade in the UK with Government and Local Authorities seeking increasing value for money and improved standards of service. In response, private sector promoters and investors continually develop innovative solutions to meet these requirements and improve their competitiveness.

 
   
 
 
JOHN LAING AIM TO BE AT THE FOREFRONT OF THIS PROCESS OF INNOVATION BY DEVELOPING HIGH QUALITY, AFFORDABLE AND VALUE FOR MONEY SOLUTIONS FOR PUBLIC AUTHORITIES. WE WELCOME PUBLIC DEBATE AND ANALYSIS THAT IS CRITICAL FOR CONTINUAL IMPROVEMENT IN PARTNERSHIP WORKING. THIS IS KEY TO THE INNOVATIVE WORKING OF PRIVATE FINANCE SOLUTIONS.
 
     
   
     
 

One such area of innovation is the move from individually negotiated single site projects to complex programmes and multi-phase schemes procured through long-term partnerships and framework agreements such as primary care facilities through the LIFT programme and new schools through the Building Schools for the Future initiative. These arrangements provide for phased investment to suit the change in needs of the public sector. Further variants of this more flexible approach to private sector involvement in the delivery of public services are likely to be adopted in both the waste and transport sectors in the UK. It is likely that these new initiatives will also be adopted over time by the other governments that are developing PFI programmes.

John Laing is responding to the opportunities outside the UK by establishing strong partnerships in those markets where conditions are attractive and where deliverable future pipelines exist. PPP programmes are increasingly being developed, in some cases for fiscal reasons, but often with strong value for money objectives. A good example of the latter is Norway, which is strong in fiscal terms, and which is pursuing its pilot PPP roads programme to optimise value for money over the lifetime of the project. John Laing is or has recently been actively involved in bidding in Norway, Finland, Ireland, Poland, Austria and Hungary and is preparing for the upcoming PPP programmes in Germany and other markets.

 
     
  Projects  
 
   
> EVERGREEN 2 DBFT – SIGNALLING AND STATION WORKS AND TRACK REALIGNMENT
Value: £80 million
   
> WARWICK PARKWAY STATION
Period: 40 years
Value: £5 million
   
> DOCKLANDS
LIGHT RAIL CGL EXTENSION
Period: 16 years
Value: £17 million
   
> WEMBLEY DEPOT
Period: 40 years
Value: £21 million
   
 
       
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