The long romance of Private Finance Initiatives has hit a bump in the road, and thanks to our unique positioning and experience, Amberside Advisors could potentially be the perfect ‘marriage counsellors’, bringing positive resolutions to both public and private sector stakeholders from across the PFI industry.
The White Frasier report came out in July revealing the state of play with the once lauded Private Finance Initiatives (PFI), which in the heady days of the 90s and 00s were seen as a perfect love story for UK infrastructure.
These long-term contracts, often spanning 25 – 30 years, have helped to build schools and hospitals across the country, but with the honeymoon over for PFIs, one thing is in short supply: trust.
As stated in the White Frasier report, in response to a lack of funds, Public Authorities have become much more meticulous in their enforcement of PFI contract of late, causing bad feeling between them and their private sector partners. This breakdown in goodwill has led to an increase in disputes, both legal and otherwise.
Every case is different, and there can be a number of reasons why public bodies take issue with their PFI funded infrastructure, but it is certain that these partnerships will be dysfunctional if public and private cannot work together to find solutions.
At Amberside, we are perfectly placed to act as marriage counsellors to these fraught but important relationships. In the past we have been hired jointly by public and private partners to give impartial advice in disputes which had gone on for a decade. As a neutral third party, unwedded to either side’s interests, we are able to decipher a singular version of the truth with a joint mandate.
The many and myriad changes made to assets, mismatched views on costs and lengthy nature of contracts, all create a situation in which facts and transparency are essential to prevent unproductive recriminations. Partnership is when both parties work together, rather than playing to one side’s benefit. Amberside can audit the marital assets for everyone to locate errors and find solutions.
As independent actors, Amberside can stop these longstanding relationships from ending in a messy divorce, saving everyone time and money – an outcome most desired in the public interest.
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Paul Austin,
Director of Amberside Advisors