Wates Group urges return to private finance initiatives to boost economy
Wates Group urges return to private finance initiatives to boost economy
- New private-public partnerships needed to deliver the next generation of critical infrastructure, including schools, hospitals, housing and defence
- “Alliance Investment Model” improves on PFI through co-ownership and increased efficiency
- A fresh approach will provide true value for money and could help unlock important pension fund investment
Today, as one of the country’s leading family-owned development, building and property services companies, we are launching a white paper calling for the government to rethink its position on private finance to deliver real growth for the UK economy.
With 128 years of experience delivering public infrastructure, we have set out a form of investment model to help fund the next generation of schools, hospitals and housing the country urgently needs.
Our Wates’ Alliance Investment Model outlines how and why a return to public-private partnerships is the only viable route to unlocking these developments, as well as energy and transport infrastructure, and defence, police, fire and ambulance facilities.
Ahead of the government’s upcoming infrastructure strategy, the approach draws on successful models in Scotland and Wales, improving on PFI with co-ownership and better oversight to deliver true value for money for the taxpayer and good investments for the private sector.
It can help deliver the capital required for new public projects in a fiscally sound way – including helping to unlock pension fund investment with more government involvement – and with safeguards built in to ensure past mistakes are not repeated.
The plan was being unveiled today (Wednesday, 21 May) by CEO Eoghan O’Lionaird at the Real Estate Investment and Infrastructure Forum in Leeds.
The government is facing an acutely challenging fiscal picture. To finance infrastructure delivery, it must access private capital to move at the speed required and drive economic prosperity.
“Our Alliance Investment Model outlined in our white paper is a fresh approach to funding the next generation of UK infrastructure, improving on PFI, and is the only viable route to unlocking the housing, schools and hospitals the country urgently needs.
“If we back the right assets and pick the right partners for projects over the next decade and beyond, using standardisation to drive efficiency, alongside shared responsibility and effective oversight, we can deliver a new chapter of quality infrastructure investment.”
Eoghan O’Lionaird
Chief Executive Officer, Wates Group
What the white paper is calling for: The Alliance Investment Model
To deliver the scale and speed of quality infrastructure development the country needs, Wates’ white paper urges the government to focus on:
- Backing the right assets – focusing on assets or groups of assets across the public sector, limited to a value above £100 million.
- Picking the right partners – open to contractors with a proven track record and a strong balance sheet.
- Collaboration to drive cost savings and efficiency – an alliance procurement approach to ensure designs are standardised and used repeatedly to replicate buildings, saving time and money.
- Balancing risk and reward for all parties – share responsibility effectively between the government and alliance partners through a special-purpose financial vehicle.
- Experienced oversight – to oversee negotiation, awarding and management of a new wave of public-private partnerships, a new dedicated public-private partnership government delivery body should be set up sitting under the National Infrastructure and Service Transformation Authority.
