Market reports, business information and market research from Midnight Croquet. AMA Research Private Finance Initiative Market Report 2003

About market research company Midnight Croquet and our market report services

Read about how AMA Research create their market reports

AM75073

AMA RESEARCH MARKET REPORT : Private Finance Initiative Market Report March 2003.

Our price £995 plus VAT

CLICK

TO BUY

BRIEF DESCRIPTION

his report provides a view on how the Private Finance Initiative (PFI) market has developed since 2001, taken from the perspective of prime contractors. It also identifies those sectors expected to show growth and those where growth opportunities are likely to be limited. A market overview covers market size, the market mix and future prospects. The report also provides a sectoral breakdown of the PFI market, highlighting key players in each sector, and analysis of major players in the market, highlighting recent market entrants and focusing on the main construction contractors and facilities management (FM) providers.

The report covers:

The UK PFI Market - overview of key trends, by HM Treasury budget costs and by private sector capital costs. Issues covered include bidding costs, changes in procurement methods and processes.

Sectoral breakdown of the PFI Market - analysis of market sectors in accordance with Government departments allocating PFI credits e.g. MoD, DfES, DoH, DfT etc. Tables for each sector showing projects at signed and preferred bidder status, capital values, contracting consortia and prime contractors. The report highlights key players in each sector.

Major players in the PFI Market - analysis of providers, i.e. contracting consortia and prime contractors. Outlines of contracts signed and at preferred bidder status. Highlights recent market entrants. Focus on main construction contractors and FM providers.

As of February 2003, some £9bn+ worth of PFI contracts had been signed, and this is set to increase substantially, underpinned by the Government's commitment to PFI as a key mechanism to improving public services at the best possible value. However, PFI has come in for much criticism on many issues. The report assesses those controversial issues highlighted by several leading contractors e.g. long tendering periods and bidding costs.

Nonetheless, the stamp of approval given to PFI by a recent National Audit Office survey is likely to secure the future for PFI. This concluded that most projects are being delivered on time and within budget, and the process had improved significantly since the previous survey in 1999.

Areas of particular interest:-

Sectoral analysis of PFI projects to date - capital values, consortia

Future trends within the different sectors - likely volume of demand.

Changes in market e.g. NHS procurement.

Identification of major prime contractors, overall and by sector.

Key areas of coverage in the report include:

BACKGROUND - EVOLUTION OF PFI

Initial stages of PFI - evolution from 1992 to the advent of the Labour Government in 1997.

Early reviews of the PFI - the Bates reviews and the reorganisation of public procurement.

PFI and the Labour manifesto of 2001 - the expectations of PFI during the second Labour term.

MARKET OVERVIEW

The current situation - funds already committed, importance, future trends; government reorganisation.

Market size, capital expenditure on PFI.

Relative importance of PFI expenditure as compared to all Government spending.

Key recent issues e.g. tendering processes, bidding costs, timing of projects.

Market mix according to Government Departments allocating credits.

SECTOR ANALYSIS

Sectors covered in detail include - Defence, Education, Environment, Health, Home Office, Office of the Deputy Prime Minister, Lord Chancellor's Department, Transport. Scotland, Wales, N. Ireland and others. Background to each sector.

Sectoral analysis of PFI projects committed - total amounts, major projects signed and those at preferred bidder stage.

Key issues within sectors e.g. delays, procurement changes, new Government policies, growth in numbers of projects coming on-stream.

Expansion of PFI into new areas e.g. leisure, waste management. Identification of key growth areas e.g. secondary education, primary healthcare.

Listed consortia and their members and identification of main players in each sector.

THE MAJOR PLAYERS

Review of equity investment specialists, identification of leading providers of PFI funds

Assessment of changes in supply sector e.g. new players, companies scaling down PFI activities

Major prime contractors, recent histories, contracts signed & with preferred bidder status. Major PFI Prime Contractors, Capital Values & Status as of Feb 2003 - 33 companies covered including Balfour Beatty, Carillion, Jarvis, WS Atkins, Interserve, Bovis Lend Lease, John Laing, AWG, Skanska

Leading FM companies in PFI market, contracts signed & at preferred bidder status - 21 companies covered including; Sodexho, MITIE, Serco, Equion FM, Interservefm, Group 4, Falck GSL & ISS.

Leading providers of IT services, contracts signed and at preferred bidder status

COMPANIES COVERED

Alexander Rose Ltd, Besco Baron, Bridgeman, PJ & Co, Jacobs Young & Westbury Ltd, Keter (UK Ltd, Kettler (GB) Ltd, King Easton Ltd, Leidure Plan Sales & Marketing, Leisuregrow Products Ltd, Li-Lo Leisure Products Ltd, LLC Ltd, Mercer Agencies Ltd, Oasis Leisure Products, Sauvagnat UK, Essex Replica, Castings Ltd, Barlow Tyrie Ltd, Berkeley ForgeBlack Forge Arts, Branson Leisure, Classic Furniture Group Ltd, Cosmo Ltd, Denewood Garden Furniture, Elegant Ltd, Fairweather Trading Ltd, Flaxley Forge (RS Watts & Sons), Gloster Furniture Ltd, Grosfillex UK Ltd, John Robertson Ltd, Konstsmide Uk Ltd, Lister Lutyens Co Ltd, Meadowcraft UK Ltd, Neptune Classics, Norfolk Leisure Company Ltd, Nova Garden Furniture, Pacific Trading, Pine Venture, Pro-Team Sports & Leisure Ltd,

Roy Firman Ltd, Scanply International Wood Products Ltd, Stuart Garden Arch, Sundial Ornamental Products, Swan Hattersley Ltd, Teak Antiquity Ltd, The Outdoor Living Trading Co Ltd, The Regent Garden Collection, PJ Bridgman & Company Ltd, F. Peart & Co, Glencrest Seatex, Westminster Teak, Lafuma, Kestrel Trim, Claircraft Industries Pty, Jardine International, Britannic Garden Furniture Ltd, Forest Fencing, Thomas Johnstone Ltd, Indian Ocean Trading Company, Tradewinds Parasol, Grant, Barnet and Company, Char-Broil International, Thermos Ltd, Sunbeam Corporation Inc, Coleman UK, Crosslee plc, Sunshine Lifestyle Products Ltd, The Australian Barbecue Company, OMC, Barbecues Limited, Weber-Stephen Products (UK), Barbecook, Outdoor Chef UK, Flame & Leisure, Fiesta Barbecues, Oz-Style, Magma Products Inc., Chartan Aldred, Big K Charcoal Merchants, Parlour Products, Rectella International Ltd, Plum Products Ltd, Calor Gas, Crosslee, Outdoor Chef, Kirkless, Sierrs Space Heating Ltd, Direct Designs Ltd, Universal Concepts Ltd, Sunnflair, Neptune, La, Hacienda, Kirklees Developments Ltd, Chiminea uk, Abode Chimineas, B & Q, Homebase, Schroder Vetures, Jsainsbury plc, Focus Wickes, Leekes, Trago Mills, Laver, Glyn Webb, Chaplins, Wyevale Garden Centres pl c, Notcutts Ltd, Dobbies, Garden Centres plc, Hillier Nurseries, Squires, Blu Diamond Ltd, Klondyke Garden Centres, Bridgemere Garden World, Blooms of Bressingham plc, Van Hage, Webbs of Wychbold, Stephen H Smith's Garden & Leisure, Haskins Garden Centers, Q Garden Company, Country Homes and Gardens, Ruxley Manor, Great Universal Stores plc, Argos, Marks & Spencer, Debenhams, BHS, John Lewis, Kingfisher Group, Habitat, IKEA, Cargo Homestores Ltd, Mica, Wilkinsons, Home Hardware.

TABLE OF CONTENTS

1. INTRODUCTION 10

2. EXECUTIVE SUMMARY 11

3. BACKGROUND - THE EVOLUTION OF PFI. 13

4. MARKET OVERVIEW 17

4.1 MARKET SIZE 17

4.1.1 Market Size Perspective 17

4.1.2 Tendering Process 22

4.1.2.1 Bidding Costs 22

4.1.2.2 Bidding Delays 23

4.1.3 Skills Shortages 25

4.1.4 Resistance To PFI 25

4.2 MARKET MIX 26

4.3 FUTURE PROSPECTS 28

5. REVIEW OF SECTORS 29

5.1 DFES 29

5.1.1 Background 29

5.1.2 Schools PFI Status 30

5.1.3 Schools - Preferred Bidder/Signed Deals 31

5.1.4 Leading Companies 34

5.1.5 Higher & Further Education 35

5.2 DEPARTMENT OF HEALTH 38

5.2.1 Value of DoH Projects 38

5.2.2 Procurement Model Developments 39

5.2.3 NHS hospitals 40

5.2.4 Leading Companies 44

5.2.5 Primary Care 45

5.2.6 Diagnostic & Treatment Centres (DTC) 46

5.3 DEFENCE 46

5.3.1 Background 46

5.3.2 Schemes 47

5.3.3 Leading Companies 49

5.4 HOME OFFICE 50

5.4.1 Background 50

5.4.2 Prisons and YOI 51

5.4.3 Police Stations 51

5.4.4 Detention Centres 52

5.4.5 Home Office Projects 52

5.4.6 Leading Companies 55

5.5 LORD CHANCELLOR'S DEPARTMENT (LCD) 55

5.5.1 Background 55

5.5.2 Schemes 56

5.5.3 Leading Companies 58

5.6 TRANSPORT 58

5.6.1 Highways Agency 59

5.6.2 Local Transport Authorities 61

5.6.3 Other Contracting Authorities 64

5.6.4 Leading Companies 67

5.7 ENVIRONMENT, FOOD & RURAL AFFAIRS 67

5.8 SCOTLAND, WALES & NORTHERN IRELAND 70

5.8.1 Scottish Executive 70

5.8.1.1 Schools 71

5.8.1.2 Environment 73

5.8.1.3 Healthcare 75

5.8.1.4 Other Sectors 77

5.8.2 Wales 79

5.8.3 Northern Ireland Executive (NIE) 81

5.9 OFFICE OF THE DEPUTY PRIME MINISTER (ODPM) 84

5.9.1 Schemes 84

5.9.2 Social Housing 86

5.10 CULTURE, MEDIA & SPORT 87

5.11 OTHER 88

6. PROVIDERS 91

6.1 INTRODUCTION 91

6.2 EQUITY INVESTMENT SPECIALISTS 94

6.3 LEADING PRIME CONTRACTORS ON DBFO/DB PROJECTS 98

6.3.1 Major Companies 98

6.3.2 Alfred McAlpine Plc 99

6.3.3 AMEC Plc 100

6.3.4 Amey Plc 101

6.3.5 AWG Group Plc 102

6.3.6 Babcock & Brown Properties 103

6.3.7 Balfour Beatty Plc 104

6.3.8 Ballast Ltd 107

6.3.9 Bilfinger Berger UK 107

6.3.10 Bouygues (UK) 108

6.3.11 Bovis Lend Lease Ltd 109

6.3.12 Carillion Plc 110

6.3.13 Costain Plc 111

6.3.14 Galliford Try Plc 112

6.3.15 HBG Construction 113

6.3.16 Interserve PLC 113

6.3.17 Jarvis PLC 115

6.3.18 John Laing Plc 116

6.3.19 Kajima Europe Ltd 118

6.3.20 Mowlem PLC 119

6.3.21 Kellogg Brown & Root (KBR) 121

6.3.22 Kier Group Plc 121

6.3.23 Miller Group Plc 122

6.3.24 MJ Gleeson Group Plc 123

6.3.25 Morgan Sindall PLC/Morgan Est 124

6.3.26 Norwich Union Public Private Partnership (NUPPP) 125

6.3.27 Skanska UK Ltd 126

6.3.28 Sir Robert McAlpine Plc 128

6.3.29 Taylor Woodrow Plc 128

6.3.30 Vinci Plc 129

6.3.31 Wates Ltd 130

6.3.32 WS Atkins Plc 131

6.4 FM PROVIDERS WITHIN THE PFI/PPP SECTOR 133

6.4.1 Leading Companies 133

6.4.2 Amey BPO Services 134

6.4.3 Carillion Services 134

6.4.4 Caxton Integrated Services 135

6.4.4 Ecovert 136

6.4.5 Equion 137

6.4.6 Group 4 Falck Managed Services 138

6.4.7 Haden Building Management 138

6.4.8 HBG UK Facilities Management 139

6.4.9 Integral Services 140

6.4.10 Interserve 140

6.4.11 ISS 142

6.4.12 Jarvis Workspace FM 143

6.4.13 Maclellan Group 144

6.4.14 MITIE Group 145

6.4.15 Mowlem Aqumen/Mowlem Pall Mall 146

6.4.16 Parkwood Holdings 147

6.4.17 Rentokil Initial 148

6.4.18 Serco Group 149

6.4.19 Sodexho UK 150

6.4.20 Taylor Woodrow Facilities Management 151

6.4.21 Wiltshier Facilities Management 151

6.4.22 WS Atkins Facilities Management 152

6.5 IT SERVICE PROVIDERS 153

6.5.1 Electronic Data Systems UK 153

6.5.2 Fujitsu Services 154

6.5.3 RM PLC 155

6.5.4 Siemens Business Services 155

GLOSSARY OF TERMS 157

DIAGRAMS

TABLE 1 PFI CAPITAL EXPENDITURE 2000 -2002 (£MILLION) 18

TABLE 2 PFI AND TOTAL PUBLIC CAPITAL EXPENDITURE 19

TABLE 3 ESTIMATED CAPITAL SPENDING BY THE PRIVATE SECTOR (SIGNED DEALS) (£ MILLIONS) 21

TABLE 4 SHARES OF PFI/PPP CONTRACTS SIGNED BY CAPITAL VALUE £M AT JAN 03 27

TABLE 5 STATUS OF THE SCHOOLS PFI PROGRAMME IN ENGLAND AND WALES AS OF JANUARY 2003 30

TABLE 6 ENGLAND -SCHOOLS PFI/PPP PROJECTS - SIGNED & PREFERRED BIDDER STATUS 32

TABLE 7 ENGLAND - FURTHER & HIGHER EDUCATION LARGER PFI /PPP PROJECTS SIGNED &PREFERRED BIDDER 36

TABLE 8 DOH PFI SCHEMES - MIX BY RANGES OF CAPITAL VALUES & PROJECT NUMBERS 38

TABLE 9 SUPERSEDED PFI PROCUREMENT MODEL 40

TABLE 10 NEW PFI PROCUREMENT MODEL 40

TABLE 11 NHS MAJOR HOSPITAL PFI/PPP PROJECTS STATUS AS OF JANUARY 2003. 41

TABLE 12 NHS MAJOR HEALTHCARE PFI/PPP PROJECTS -SIGNED & PREFERRED STATUS 42

TABLE 13 MOD PFI/PPP PROJECTS SIGNED & PREFERRED BIDDER STATUS AS OF JAN 2003 48

TABLE 14 HOME OFFICE PFI/PPP PROJECTS SIGNED & PREFERRED BIDDER STATUS 53

TABLE 15 LORD CHANCELLORS DEPARTMENT COURTS PFI PROJECTS SIGNED & PREFERRED BIDDER STATUS 57

TABLE 16 HIGHWAYS AGENCY -PFI/PPP PROJECTS -SIGNED AS OF FEBRUARY 2003 60

TABLE 17 LOCAL AUTHORITIES TRANSPORT SCHEMES SIGNED & PREFERRED BIDDER STATUS 63

TABLE 18 DEPARTMENT OF TRANSPORT - OTHER CONTRACTING AUTHORITIES PFI/PPP PROJECTS -SIGNED & PREFERRED BIDDER STATUS 66

TABLE 19 DEFRA PFI & PPP SCHEMES -SIGNED AS OF JANUARY 2003 69

TABLE 20 PFI/PPP - SIGNED DEALS ENDORSED BY THE SCOTTISH EXECUTIVE BY SECTOR 70

TABLE 21 SCOTTISH EXECUTIVE - EDUCATION PFI/PPP PROJECTS - SIGNED 72

TABLE 22 SCOTTISH EXECUTIVE - ENVIRONMENT PFI/PPP PROJECTS SIGNED 74

TABLE 23 SCOTTISH EXECUTIVE - LARGER HEALTHCARE PFI/PPP PROJECTS -SIGNED 76

TABLE 24 SCOTTISH EXECUTIVE - OTHER PFI/PPP PROJECTS -SIGNED & PREFERRED BIDDER STATUS 78

TABLE 25 NATIONAL ASSEMBLY FOR WALES - PFI/PPP PROJECTS SIGNED & PREFERRED BIDDER STATUS 80

TABLE 26 CAPITAL VALUE OF NEW PROGRAMMES/PROJECTS 2004-05 TO 2007-08 82

TABLE 27 NORTHERN IRELAND AWARDED SCHEMES 83

TABLE 28 ODPM - PFI/PPP PROJECTS -SIGNED & PREFERRED BIDDER STATUS 85

TABLE 29 OTHER GOVERNMENT DEPARTMENT SPONSORED SCHEMES. 89

CHART 30 TYPICAL STRUCTURE OF SPVS 92

CHART 31 TYPICAL STRUCTURE OF A SPV - FINANCIAL INSTITUTION SEPARATE 93

TABLE 32 LEADING EQUITY PROVIDERS 96

TABLE 33 LEADING DEBT-BASED PROVIDERS 97

TABLE 34 KEY PFI/PPP PROJECTS FEATURING ALFRED MCALPINE COMPANIES 100

TABLE 35 KEY PFI/PPP PROJECTS FEATURING AMEC 101

TABLE 36 KEY PFI/PPP PROJECTS FEATURING AMEY 102

TABLE 37 KEY PFI/PPP PROJECTS FEATURING AWG COMPANIES 103

TABLE 38 KEY PFI/PPP PROJECTS FEATURING BABCOCK & BROWN PROPERTIES 104

TABLE 39 KEY PFI/PPP PROJECTS FEATURING BALFOUR BEATTY COMPANIES 106

TABLE 40 KEY PFI/PPP PROJECTS FEATURING BALLAST 107

TABLE 41 KEY PFI PROJECTS FEATURING BILFINGER BERGER 108

TABLE 42 KEY PFI/PPP PROJECTS FEATURING BOUYGUES 108

TABLE 43 KEY PFI/PPP PROJECTS FEATURING BOVIS LEND LEASE 109

TABLE 44 KEY PFI/PPP PROJECTS FEATURING CARILLION COMPANIES 111

TABLE 45 KEY PFI/PPP PROJECTS FEATURING COSTAIN 112

TABLE 46 KEY PFI/PPP PROJECTS FEATURING GALLIFORD TRY COMPANIES 112

TABLE 47 KEY PFI/PPP PROJECTS FEATURING HBG CONSTRUCTION UK 113

TABLE 48 KEY PFI PROJECTS FEATURING INTERSERVE COMPANIES 114

TABLE 49 KEY PFI PROJECTS FEATURING JARVIS ACCOMMODATION SERVICES 116

TABLE 50 KEY PFI/PPP PROJECTS FEATURING JOHN LAING COMPANIES 118

TABLE 51 KEY PFI/PPP PROJECTS FEATURING KAJIMA EUROPE 119

TABLE 52 KEY PFI/PPP PROJECTS FEATURING MOWLEM COMPANIES 120

TABLE 53 KEY PFI/PPP PROJECTS FEATURING KELLOGG BROWN & ROOT 121

TABLE 54 KEY PFI/PPP PROJECTS FEATURING KIER GROUP COMPANIES 122

TABLE 55 KEY PFIPPP PROJECTS FEATURING MILLER GROUP 123

TABLE 56 KEY PFI/PPP PROJECTS FEATURING MJ GLEESON 124

TABLE 57 KEY PFI/PPP PROJECTS FEATURING MORGAN EST 125

TABLE 58 KEY PFI/PPP PROJECTS FEATURING NUPPP 126

TABLE 59 KEY PFI/PPP PROJECTS FEATURING SKANSKA UK COMPANIES 127

TABLE 60 KEY PFI/PPP PROJECTS FEATURING SIR ROBERT MCALPINE 128

TABLE 61 KEY PFI/PPP PROJECTS FEATURING TAYLOR WOODROW 129

TABLE 62 KEY PFI/PPP PROJECTS FEATURING VINCI COMPANIES 130

TABLE 63 KEY PFI PROJECTS FEATURING WATES 131

TABLE 64 KEY PFI/PPP PROJECTS FEATURING WS ATKINS COMPANIES 132

TABLE 65 LEADING FM COMPANIES IN PFI WITH ORIGINS IN CONSTRUCTION OR ENGINEERING 133

TABLE 66 KEY PFI PROJECTS FEATURING CARILLION SERVICES 135

TABLE 67 KEY PFI PROJECTS FEATURING CAXTON INTEGRATED SERVICES 136

TABLE 68 KEY PFI PROJECTS FEATURING ECOVERT 136

TABLE 69 KEY PFI PROJECTS FEATURING EQUION FM 137

TABLE 70 KEY PFI PROJECTS FEATURING GROUP 4 FALCK MANAGED SERVICES 138

TABLE 71 KEY PFI PROJECTS FEATURING HADEN BUILDING MANAGEMENT 139

TABLE 72 KEY PFI PROJECTS FEATURING HBG (FACILITIES MANAGEMENT) 140

TABLE 73 KEY PFI PROJECTS FEATURING INTERSERVEFM 141

TABLE 74 KEY PFI PROJECTS FEATURING ISS MEDICLEAN 142

TABLE 75 KEY SCHOOLS PFI PROJECTS FEATURING JARVIS WORKSPACE FM 143

TABLE 76 OTHER KEY PFI PROJECTS FEATURING JARVIS WORKSPACE FM 144

TABLE 77 KEY PFI PROJECTS FEATURING MITIE PFI/FM 145

TABLE 78 KEY PFI PROJECTS FEATURING MOWLEM AQUMEN 146

TABLE 79 KEY PFI PROJECTS FEATURING PARKWOOD COMPANIES 147

TABLE 80 KEY PFI PROJECTS FEATURING RENTOKIL INITIAL MANAGEMENT SERVICES 148

TABLE 81 KEY PFI/PPP PROJECTS FEATURING SERCO 149

TABLE 82 KEY PFI/PPP PROJECTS FEATURING SODEXHO COMPANIES 150

TABLE 83 KEY PFI PROJECTS FEATURING TAYLOR WOODROW FM 151

TABLE 84 KEY PFI PROJECTS FEATURING WILTSHIER FM 152

TABLE 85 KEY PFI PROJECTS FEATURING WS ATKINS FM 153

TABLE 86 KEY PFI/PPP STAND-ALONE IT PROJECTS FEATURING EDS 154

TABLE 87 KEY PFI/PPP STAND-ALONE PROJECTS FEATURING FUJITSU 154

TABLE 88 KEY PFI PROJECTS FEATURING RM PLC 155

TABLE 89 KEY PFI PROJECTS FEATURING SIEMENS BUSINESS SERVICES 156

Can't find what you need?
Try our "Research on Request" market report service and define your own report research!
Fixed prices - £150, £450 and £1,250 - and fixed delivery of 4, 5 and 14 days

Click here for full details

Ariadne - working together with our customers to enhance productivity and increase knowledge
© 2004 www.the-list.co.uk Ariadne
Last updated by Amanda Porteous February 2004