Competitive tendering and public private partnerships Jordan, Sophie & Emily.

Slides:



Advertisements
Similar presentations
Public Private Collaboration in Health Care Provision Montenegro Workshop September 2007 Matthias Loening.
Advertisements

Department for Work and Pensions 1 The Work Programme Tuesday 7th September 2010.
WHAT WILL THE NEW MARKET IN HEALTH CARE MEAN FOR THE PROFESSIONALS WE EDUCATE? Sally Ruane.
A framework for organising and financing infrastructure provision Jan-Eric Nilsson, VTI.
Introduction Leasing and hire purchase are financial facilities which allow a business to use an asset over a fixed period, in return for regular payments.
Higher Business Management
The Case for Medicaid Expansion. Who We Are We’re a coalition of concerned Kentuckians, over 250 organizations and individuals, who believe that the best.
Company LOGO Performance- or Output-Based Procurement (PBP): Basics and Applications in Bank Projects Patricia Baquero
The NHS and the Private Sector
John Boon ZUT November Procurement Systems The organisation of the interaction between the purchaser of a new building and the suppliers of goods.
Contracting vs PPPs Making our terminology clear Bangkok, May-June 2011 course.
IX EUROSAI Congress The Hague 17 June 2014 Performance Audit of PPPs Residential Homes for the Elderly National Audit Office - Malta.
Prison privatisation September The Public expenditure Implications of the Private Finance Initiative: case study of the NHS in England and Scotland.
Tony Williams Building Value Ltd the independent strategic advisor to the building materials, construction & support services sectors 6 December 2002.
v1 The Future of PPPs in Hong Kong Project Chambers Forum 28 May 2010 Presented by Sam Farrands.
NATASHA JOLOB Tendering and procurement – Social Firms UK 2 July 2010.
Novel Procurement Options ARBE121 – PFI  Variants, additions to or environments for routes  Private Finance Initiative (PFI) A funding & operational.
Shopping for an Automobile Loan What Do I Need to Know? Using Standard Calculators.
Bevan Brittan LLP- Highways Maintenance Contracts Nathan Bradberry, Senior Associate Johnathan Adams, Associate 6 November 2014.
Structure of Project in PPP- (2) John Plumb. Agenda Following on from the Strategy and business case to develop the ideas Structure of PPP arrangements.
The Public/Private Debate in Education Tim Hill Director of Studies, CEAS Director of Academic Development, Graduate School of Education.
Highways: free or toll?. In the past, roads were considered a public good Now it is possible to make people pay: should roads be produced by the private.
Copyright ⓒ 2011 Samsung SDS Co., Ltd. All rights reserved | Confidential Public Private Partnerships in Korea: A Private Sector Perspective from Samsung.
Dave Watson Scottish Organiser Protect our Pensions LGPS Update.
Public Private Partnership: an effective mechanism for better service delivery? Education Harry Anthony Patrinos.
Private Finance Initiatives Dominic Montagu. Harding-Montagu-Preker Framework: Overview Distribution (equity) Efficiency Quality of Care Source: Adapted.
Patient Advice and Liaison Service NHS Devon, Plymouth and Torbay The work of PALS Patient transport Health and Wellbeing Boards.
Financing Urban Public Infrastructure
PPP Problems & Pitfalls: How to Avoid Them April Harding Mazowiecke Voivodeship January
Down the Tube: London Underground and the Public-Private Partnership Rachael Finn Arthur Huang Katie Roth Adam Thiele October 3, 2007 CE 5212/PA 5232.
Inclusion and strengthening of social services as part of the agenda on ageing Rosemary Lane, Focal Point on Ageing United Nations Department of Economic.
G1 (BAII Plus) Shopping for an Automobile Loan What Do I Need to Know? Using Financial Calculators.
Long-Term Financing. Basics of Long-Term Financing.
Shopping for an Automobile Loan What Do I Need to Know? Using Standard Calculators.
Shopping for an Automobile Loan What Do I Need to Know? Using Financial Calculators.
The Private Finance Initiative n Advantages * Benefits of the PFI The major appeal of the PFI for the government is that the cost of the hospital does.
Stave Lake Water Supply and Treatment Project Business Case for P3 Canada Fund Funding Request AMWSC April
INSURANCE Personal Finance. Insurance Protects individuals against unexpected financial loss.  Many types of insurance, each with a specific purpose.
Learning from UK PPP Experience Andrew Fraiser Allen & Overy 24 March 2004.
ACCOUNTING FOR HEALTHCARE Pertemuan 8-12 Matakuliah: A1042/Accounting Software Package for Services Tahun: 2010.
Objective 2.03 Analyze financial and legal aspects of home ownership.
1 Chase Smith Health Insurance. 2 Health Insurance Facts 85 of 100 Americans are currently covered by a government based health insurance or private health.
CAPITAL CHARGES AND PRIVATE FINANCE IN A PUBLIC HOSPITAL SYSTEM Jon Sussex Office of Health Economics, England.
Management and Administration of Health Insurances.
CIVL202 Construction Engineering I Tutorial 5 T1Mon11:00 – 11:50 T2Wed09:00 – 09:50.
III Astana Economic Forum. Ensuring Sustainable Economic Growth of Countries in Post-Crisis Period July 1-2, 2010 JSC «Kazakhstan public-private partnership.
PP U NIT 6 T HE O VERSIGHT AND A DMINISTRATION OF P UBLIC F UNDS Private Equity Financing for Public Capital Assets.
Contributions to Publicly Financed Health Care and their Coordination in the European Union Filip Křepelka Masarykova univerzita,
Transport Economics Resource Allocation in Transport.
Contributions to Publicly Financed Health Care and their Coordination in the European Union Filip Křepelka Masarykova univerzita,
Public Private Partnerships “The Third Way” (T. Blair)
Volvox Understanding the Budget Angela Pettit – Contracts Officer.
WSSB Capacity Enhancement Workshop1.  Definition: Public-Private Partnerships (PPPs) are a form of legally enforceable contracts between the public and.
2 H i g h e r E d u c a t i o n © Oxford University Press, All rights reserved. Chapter 12: Health and health care Barr: Economics of the Welfare.
Atlantic Connection 2011 Roundtable Discussion Public Private Partnerships: What's in it for my Government?" 6th Annual Economic & Financial Development.
PRESENTATION BY NATIONAL DEPARTMENT OF HEALTH ON PLANS FOR LOCAL PROCUREMENT THROUGH PUBLIC PROCUREMENT POLICY BAISED TO SMMEs AND COOPERATIVES TO PORTFOLIO.
STUDENT FINANCE 2016/17 A PARENT’S INTRODUCTION. SESSION CONTENTS Common concerns Student Finance Wales The student finance package Student Loan repayment.
Shopping for an Automobile Loan What Do I Need to Know? Using Financial Calculators.
Public-private partnership (PPP)  describes a government service or private business venture which is funded and operated through a partnership of government.
Private Health Insurance
The next part of the specification. The key factors of 1.5 There are basics that need to understood before we can start 1.5 – basic terminology.
Revision Session 4 The Government & the economy. What is taxation?
Payment by Results in the UK National Health Service Charles Carson April 2008 Development of National Coding Standards within the Czech DRG System.
Autumn Staff briefings As a NHS patient, care is provided free at the time you need it, whether this is from a hospital or community nurse or.
For the parents / carers of current Year 12 students ( 2012 – 2013 ) STUDENT FINANCE Nower Hill 6 th Form A guide to applying for financial support for.
CHAPTER NINE LETTER OF CREDIT VARIATIONS. One of the great strength of the letter of credit is its flexibility. The basic letter of credit can be changed.
Construct a mind map showing how councils get their money. HOW COUNCILS GET THEIR MONEY.
Managed Health Care Manar alramli
BSBSMB406A Manage Small Business Finance
Nationalising Special Purpose Vehicles to end PFI
Presentation transcript:

Competitive tendering and public private partnerships Jordan, Sophie & Emily

What is it? The Private Finance Initiative (PFI) is the method of funding used to finance Public and Private Partnerships (PPP). It is the Governments favourite way of funding projects such as new hospitals. For example, the Labour government financed 15 major PFI hospital schemes in England and 3 in Scotland.

Whos involved in the scheme? PFI operates with a group of companies including a financial backer, a construction company and a management contractor. The group agree a contract to build and maintain a hospital over a period of time. The NHS agree to pay a fixed annual fee to use the hospital. If the NHS decides it no longer needs the hospital, it must continue payment of the agreed fee until the contracts expiration.

Who works for who? In a PPP hospital, the NHS will employ the medical staff. Catering, porters, security and maintenance staff will be employed by an outside contractor. Crucially, medical provision will remain free, however patients will have the option of paying for better food or a private room.

Benefits ? The Government can have hospitals built without the high costs being met out of current taxation or cuts in services elsewhere. The Government refuses to diverge the cost of PFI contracts, citing commercial confidentiality. However, the profits made by private consortiums in other PFI contracts show that 200% plus is not unusual.

Disadvantages? PFIs will cost taxpayers far more in the longterm. The companies building the hospitals have to borrow at higher rates than the Government can and will make a profit. Both these things will be reflected in higher fees. They may also cut costs to create higher profits, and this may result in inferior provision. Another concern with PFI contracts is that medical staff may find the developments more commercially driven than medically driven. Profitable activities may take more priority over the actual needs of the local community. Non medical staff may find pay and conditions squeezed in the interest of saving money and this will affect morale and efficiency.

Recent Example In the UK, two-thirds of the London Underground PPP was taken back into public control in July 2007 after only 4 and a half years at an estimated cost of £2 billion The remaining one-third was taken back into public control in May 2010 after 7 and a half years for a purchase price of £310m. The Government had paid advisers £180m for structuring, negotiating and implementing the PPP and had reimbursed £275m of bid costs to the winning bidders