Private Finance Initiative (PFI)

What is PFI?

PFI stands for Private Finance Initiative and plays an important role in the Government's investment plans for delivering public services, especially in health and education. PFI is a partnership between the public and private sector and provides a way of funding major capital investment without immediate repayment from the Government. Typically, a PFI project involves a private consortia, usually a large construction firm who are contracted to design, build and maintain the school. This is generally a 25 to 30 year contract, during which time a Public Authority leases the building; at the end of the contract the school is then handed back to the Public Authority. PFI aims to combine value for money with efficient use of private capital to achieve its goals.

Since May 1997, PFI funding has built 884 schools. Currently 651 of these schools are open and 232 schools are under construction.

Who is the Council working with to deliver the Schools PFI Project?

The process of getting Government credits and negotiating through the complexities of a PFI scheme kept the in-house PFI team busy and on 27 February 2007, Pyramid Schools Consortium, led by Interserve Plc, were announced the chosen contractor for the Plymouth Schools PFI Project.

They have been working very closely with the involved schools, to help establish the school's needs and shape the building designs for the delivery of 21st century education.

Corporate objectives:

The PFI project achieves a number of objectives in the Council’s new Corporate Plan, namely to:

• improve the quality of school buildings and remove surplus places, including the development of ‘extended schools’
• extend inclusive educational opportunities for pupils with special needs
• improve adult basic skills through improved access to adult and community learning opportunities
• raise pupil attainment
• ensure a broad range of formal and informal curriculum opportunities is available to young people
• improve the library service through investment
• improve the quality of sports and leisure facilities
• improve access to arts and cultural activities
• enrich the quality of life for people by improving their neighbourhoods
• improve transport and road safety.

Support

"This is a wonderful example of the public and private sector working together to create something that will be of enormous benefit to the people of Plymouth. I am not just talking about children, but about their families and friends who will be able to use facilities out of hours.

"Education is at the heart of regeneration in this city and nowhere is this clearer than at the campus in Whitleigh and the new school Riverside Community School in St Budeaux.

"Without the partnership with Pyramid these schools would not be built. Work is well and truly underway on both these projects as well as the new Ernesettle School and we’re also working up the plans to begin building the new school in Honicknowle to replace Chaucer and West Park Primaries."

Cllr Vivian Pengelly
Leader of the Council

"Sport England is keen to support the PFI project in Plymouth which is an exemplar project of partnership working at the strategic level. The new schools will give the local community better quality and accessible sport and activity provision which is excellent news for the city"

Ged Roddy MBE
Chair of the Sport West Regional Sports

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