PROCUREMENT MUST GET ‘CLEVER’ AS MARKET CHALLENGES CALL FOR NEW APPROACHES, SAYS PARTNERSHIPS UK
The process of procurement and project delivery should evolve to embrace the concept of ‘clever procurement’ comprising a mixed economy approach involving partners across the public, private and third sectors, according to James Stewart, Chief Executive of Partnerships UK.
Following the organisation’s annual conference entitled “Developing public services through improved procurement methods”, Stewart laid down the gauntlet to the procurement and public services community to accept the steady growth of localism in managing and delivering complex, essential projects which will deliver innovative and efficient infrastructure and services of huge benefit for the public.
Despite the significant challenges faced by the economic downturn, Stewart highlighted the fact that the marketplace was still positive – with 22 PPP/PFI deals closing since April 2009 worth £3.5 billion, twice the value of deals closed in the same period in 2008.
James Stewart said: “No one doubts that the partnership model will be tested as more investment flows through communities. What’s needed is a business model based on partnership across sectors. Initiatives such as the ‘Total Place’ pilot scheme will help test new ways of working across traditional boundaries. It’s for precisely this reason that Partnerships UK and the Local Government Association have created the Local Partnerships* joint venture.
As part of his speech, James Stewart welcomed the establishment of Infrastructure UK by the Government as a means of drawing together strategies for renewal. He also challenged major pension fund holders to play a leading role in the financing of infrastructure renewal through changes to the debt markets so as to provide much-needed project finance.
James Stewart concluded: “A real revolution is taking place – the fiscal position is challenging, but the opportunities to innovate in project delivery and in financing is huge. Now is the time for a mixed economy of ‘clever procurement’ methods that carry on the successes of the last decade. This new way of doing things will not necessarily be easy, but with a positive deal pipeline and significant projects still closing and so much to do on infrastructure renewal, we cannot afford to shirk the tests ahead.”
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Information on the Partnerships UK conference can be accessed at: http://www.partnershipsuk.org.uk/View-News.aspx?id=105
For more information, please contact:
Paul Bates
Head of Communications & Marketing
Partnerships UK
Paul.bates@partnershipsuk.org.uk 020 7273 8048
www.partnershipsuk.org.uk
Notes to Editors:
Partnerships UK (PUK) is a public private partnership formed in 2000 out of HM Treasury. We are a joint venture that bridges the gap between public and private sectors, with a unique public sector remit to work with Central Government, Devolved Administrations and Local Authorities.
Our mission is to support and accelerate the delivery of infrastructure renewal, high quality public services and the efficient use of public assets through better and stronger partnerships between the public and private sectors. The success of these partnerships is fundamental to Government's investment and modernisation programme.
*Local Partnerships is a joint venture between the Local Government Association and Partnerships UK, incorporating 4ps and all its current services. Local Partnerships’ mission is to enhance the quality of people’s lives by giving trusted, professional support to local public bodies to improve their ability to source and deliver high quality, cost-effective public services and infrastructure.