Highways Agency - Safe roads, Reliable journeys, Informed travellers

Private Finance - Public Private Partnership

Issue

The spending plans included in the 10 Year Plan allow for 25% of the additional capital investment in the trunk road and motorway network coming from private finance.

Actions on private finance:

• Proposals for major road improvements, which emerge from multi-modal studies, will be assessed for their suitability for delivery by private finance. This will take account of the value of the scheme, the size of the associated network, the impact on the strategic network operation, the nature of risks associated with the project and overall best value;
• The current form of private finance contract, known as Design Build Finance and Operate (DBFO), will be kept under review to ensure that it continues to provide the best method of delivering privately funded major improvements. Payment mechanisms will be examined and developed to find better ways of incentivising the delivery of good levels of service. Ways of involving contractors earlier will also be investigated;
• A private finance version of the MAC form of maintenance contract, a PFMAC, will be developed. Consideration will be given as to whether the scope of this form of contract should include network communications and control equipment and also any elements of network operation. In addition it could be extended to provide a means of delivering major improvements either through public or private funding.