In A review of public and private partnerships, the firm claims a number of advantages for the private finance joint venture model. Under this model, the council forms a joint venture with a funding provider. Once approved, it would be able to let contracts for the necessary services using a traditional invitation to tender.
According to the report, a major advantage is that this significantly simplifies the procurement procedure. While under the normal system each successive PFI contract is subject to a protracted negotiation process, on the joint venture model subsequent PFI contracts form an extension of terms fixed in an initial generic contract.
'While the private finance joint [venture model] presents yet more challenges for beleaguered local authorities and PFI contractors alike, the benefits arising from such a solution will be considerable for all parties,' the report says.
A review of public and private partnerships is available from Deloitte & Touche, tel: 0161 455 6826.