Private Finance Initiative - frequently asked questions

On this page there are answers to some common questions about Private Finance Initiative (PFI).

What makes a good PFI project?

A PFI project is a public/private partnership for the provision of assets and services. The standard model for accommodation projects is the provision of assets (buildings) up front with a long-term service element - usually the maintenance of the asset/s and provision of subsidiary services over the life of the contract (25 years). For the Fire and Rescue Service this generally means the provision of new fire stations and other buildings. PFI has enabled Fire and Rescue Authorities to review their asset base in terms of condition, fitness-for-purpose and in the light of their Integrated Risk Management Plans.

How can FRAs bid for credits?

Details of how FRAs go about submitting a bid are given in FRS Circulars for each bidding round. The last circular was Fire Service Circular 35/2008.

What is the minimum size of bid?

Bids from FRAs should ideally meet the HM Treasury minimum capital threshold of £20 million. 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 via the link on the right of this page.
Addition fire specific criteria are contained in Fire Service Circular 35/2008.