DBFO - Value in Road
The DBFO roads programme is a success story which needs to be told. The Highways Agency has worked in conjunction with the Private Finance Panel to develop this case study and the result is a factual record combined with a useful critique of areas where policy has changed since the programme was started. We hope that the case study will provide useful guidance to other PFI participants, including Local Authorities who can now procure PFI contracts, including DBFO road projects, within the framework of the Local Capital Finance Regulation.
One of the principal messages of the case study is that the case of PFI for road procurement has delivered contracts representing real value for money. This means that the public will receive a high standard of service on DBFO roads as lower cost.
Our first eight contracts have beaten the public sector comparator by an average value of 15%. These saving are significant and show that private sector efficiencies and the adoption of whole-life costing techniques are not just theory, but a reality.
Finally, I would like to thank all those who have bid for DBFO projects and congratulate the winners and the Highways Agency. The Government remains committed to the Private Finance Initiative and we look forward to developing a lasting relationship with the private sector in the are of road operation.