Public Private Partnerships
On this page you will find :
Introduction
Private Finance Initiative (PFI) PDF 211 KB is a UK Government initiative launched in the early 1990's and Public Private Partnerships (PPP) is the generic term for the development of projects involving both the public and private sectors (with varying levels of involvement and responsibility) of which PFI is one variant. In 1996 the Department of Education (the Department) launched a twin track approach involving both PFI along with conventional procurement to help reduce the backlog of major capital works. It was during this time that the Department initiated a programme of PPP Projects, known as the Pathfinders.
The Department funds the Education and Library Boards (ELBs) and pays grants to voluntary and grant-maintained integrated schools on approved capital expenditure. An explanation about Northern Ireland's PPP structure can be found at Office of the First and Deputy First Minister and more information about the structure of the NI Education system along with the Department’s role in the context of PPP is available at Working in the NI Estate PDF 118 KB. In the early stages of the process the Department of Education engaged the services of Partnerships UK (PUK) and in more recent years has worked with the Strategic Investment Board (SIB)
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The Process
The process begins with the Minister announcing new capital works programmes for schools. For projects that are designated PPP a series of steps are then followed in order to roll out each PPP project. The projects are grouped together into clusters to form PPP schemes and a contract is drawn up with the successful bidder who completes the works on the School Authority's behalf. When the school becomes operational, the PPP operator receives a unitary payment in respect of the provision of the facility, and the associated services over a period of 25/30 years while the school authority, school and PPP operator work together to monitor the provision of services.
Further information about the PPP process is available: Communications Strategy PDF 29 KB. You can access stages and timetable for an outline of a typical PPP project.
The advantages of the PPP approach are:
- the Department doesn't have to find the money beforehand to pay for works; rather, the successful bidder receives payment for works/services over a 25/30 year period;
- there is continuing commercial incentive for efficiency throughout the various stages of work;
- the private sector brings new and innovative ideas to projects from which schools benefit;
- appropriate risks are transferred to the private sector;
- the school principal can get on with the core business of running the school
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How PPP projects are selected:
All schools included in the Department’s new starts capital announcement, whether using the conventional procurement route or PPP, are selected on the basis of educational need. In the case of PPP schemes the works programme must meet certain criteria. A full list of schemes included in the Department’s priority list is available: Capital Allocation Process PDF 215 KB.
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Roles and Responsibilities
The Department’s role: is to provide funding, support and guidance to school authorities assisting them in taking forward each PPP project. The Department is assisted in their work by Building Advisory Branch (BAB), Development Branch, Building Branch and the Economic Advisory Unit (EAU).
Northern Ireland Public Private Partnership Education Service (PPPES): was established by the Department to support PPP projects through the appointment of project managers. This service helps to reduce the level of consultancy support required and facilitates the transfer of skills from private to public sector.
Project Manager: PPPES appoints a project manager for each PPP project. The postholder reports directly to the project board, sits on the Quality Assurance group, chairs meetings of the project team and is responsible for steering and co-ordinating activities. The project manger also has responsibility for managing consultancy support.
The Project Board: PPP projects are managed by a project board. The board consists of a team of key decision makers. Its terms of reference are very specific with reporting lines and delegated authority between it, its individual members, the school authority and project team clearly laid down. It is important that in any arrangement full accountability and stewardship of public funds is maintained.
Project Team: The Team reports to the project board and is responsible for the day-to-day conduct and management of the PPP project and is tasked to carry out activities and provide the results at each stage of the procurement. Further detail about the main roles of the project team is available from Implementing the Communication Strategy
Quality Assurance Group: The Quality Assurance Group provides an opportunity for the stakeholders to become involve in the PPP process, share their expertise and take ownership of the project. Its members are representative of the users of the services, including schools. The group is formed at an early stage in the procurement process to allow for input to the Project Documentation.
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The Projects
Further projects were announced annually from 2001 to 2003 and these are now referred to as Legacy Projects. A further tranche of projects have been announced in 2004. Information about the present position on all of these projects can be found at Potential Projects table PDF 23 KB.
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The Monitoring Process
It is important that full accountability and stewardship of public funds is maintained at all times. PPP schemes are open to public scrutiny in the same way conventional schemes are monitored and all building works must meet the standards set out in the Building Handbook.
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You can contact us by using the Contact Us button the bar above. The PPP & Strategy Unit is based in the Bangor Headquarters.
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