Key parties in a PFI/PF2 project
Key parties in a PFI/PF2 project

The following Construction practice note provides comprehensive and up to date legal information covering:

  • Key parties in a PFI/PF2 project
  • Public Sector
  • Authority/Trust
  • Private sector partners
  • Project Sponsor(s)
  • Project Co/SPV/Contractor
  • Hold Co
  • Equity investor
  • Manager
  • Finance parties
  • More...

This Practice Note looks at the key parties typically involved in a PFI or PF2 project. It considers the roles of parties in the public sector, of private sector partners, finance parties and sub-contractors, support providers and other professionals.

In the 2018 Budget (delivered on 29 October 2018), it was announced that the government will no longer use PF2 on new projects (see News Analysis: Budget 2018—what does it mean for infrastructure and housebuilding?). However, existing PFI and PF2 projects will continue to run, and given the typical lifespan of such projects this is likely to be for many years.

Public Sector

Authority/Trust

This is the public sector body that initiates and procures the PFI project and who wants the asset built and maintained (the term 'Trust' is used only in the case of NHS projects). The public sector body will typically be a local authority (including fire and rescue and (formerly) police authorities), an NHS Trust or a government department or non-departmental public body. The Authority/Trust enters into a long-term contract known as the Project Agreement which will usually have a term of 25 to 30 years. Under the Project Agreement, the Authority/Trust appoints the private sector provider to design and build (usually), and finance and operate (always) the project for the Authority/Trust over the life of the project. The Authority will set out its requirements of

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