EFFECTIVENESS OF PORTSMOUTH HIGHWAYS PRIVATE FINANCE INITIATIVES (PFI) SCHEME

Since the inception of the Private Finance Initiatives (PFI) in the United Kingdom, Government are increasingly adopting it as a means of proving infrastructure to the public neglecting the traditional procurement methods which relies completely on the public finance. Private Finance Initiative (PFI) is a method of contract procurement where the private organisation provides an infrastructure, finances, operates and maintains the infrastructure. This is done by transferring the risks involved as far reasonable to the private organisation for a specified contractual period which last for up to 20-30 years. Portsmouth Highways PFI happens to be the first of its kind in the world and therefore sets an example for others to follow.

Despite the fact that it is increasingly implemented, it is hard to say whether it is attaining Value for Money for the public sector. The construction industries now have to compete for infrastructure projects achieved through delivery of high quality construction and services as well as the clients‟/ end users satisfaction.

This study was carried out with the aim of determining whether quality performance is achieved through PFI in Portsmouth PFI scheme at the project level.

For the purpose of this research, a review of the literature was done in order to appraise the studies on some of the factors behind the development and implementation of PFIs.

A survey was done through questionnaires and a face-to-face interview administered to both the members of staff of the City Council and that of Colas who are concerned with the performance of the PFI scheme and a second questionnaire to members of the community who are the end users. The data was collected and analysed using SPSS computer analyses software.

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It was found that the public sector are not after improving the quality of the roads but repairing and maintaining a good standard from a bad condition to a reasonable condition for the stipulated contractual period. However the public sector strongly agrees that the scheme has achieved and is achieving the aims of the contract and so do the member of the community despite the fact that members of the community are not well informed about commencement of construction work. Recommendation were made in the area of determining the Value for Money of the PFI scheme, staff training, and enhance communication to gain clients/ end user‟s satisfaction.