Private Finance Initiative - frequently asked questions

Answers to common questions about Private Finance Initiative (PFI).

What makes a good PFI project?

A PFI project needs to have something which can be defined as an asset. The contract can cover the provision and/or the refurbishment of the asset/s e.g. building and refurbishment of Fire and Rescue Service (FRS) stations. In addition there needs to be a service element - usually the maintenance of the asset/s and provision of subsidiary services.

How can FRAs bid for credits?

Details of how FRAs go about submitting a bid will be circulated shortly via a Fire Service Circular sent to all Chief Fire Officers and will also be put on Communities and Local Government website at /firecirculars

What is the minimum size of bid?

Bids from FRAs should ideally meet the HM Treasury minimum capital threshold of £20 million. However HM Treasury have agreed a lower limit of £10 million for FRS PFI projects where it can be justified and can clearly demonstrate that they represent value for money. Bids of a lower value may be accepted but only on the understanding that they will be joined up with other projects in due course in order to meet the thresholds. Communities and Local Government will discuss the options for this once bids have been evaluated.

What projects will you support? / What are the criteria?

All local PFI projects must meet general criteria set by Communities and Local Government and the inter-departmental Project Review Group. Details can be found on Communities and Local Government website at www.local.communities.gov.uk/pfi/pfigrant.htm

Addition fire specific criteria will be provided shortly after the next bidding round is announced.