26 March 2008 | Paul Snell
The average cost of UK PFI deals has fallen because of a greater focus on reducing procurement costs and higher levels of scrutiny.
According to research from membership group International Financial Services, London (IFSL), the average size of deals signed fell from £150 million in 2006 to £122 million last year.
Despite the fall, the figure remains much higher than the average of £55 million in 2003 and 2004, and £71 million in 2005.
The total value of contracts signed last year also fell by more than £2 billion. Some £7.3 billion of deals were signed in 2007, compared with £9.6 billion of projects signed in 2006.
The biggest deal struck in 2007 was a contract in the defence sector for marine service boats worth £1 billion (News, 17 December 2007).
Education, boosted by the high number of school building and refurbishment deals, was the highest spending sector in 2007 with contracts worth £2.4 billion, the same value as the year before.