HM Treasury News Release
90/97                                      28 July 1997
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       ANOTHER STEP IN THE RIGHT DIRECTION FOR PFI


Paymaster General Geoffrey Robinson today welcomed a new 
Step-by-Step Guide to PFI.  The guidance is the first to be
published since the recent review of the Private Finance
Initiative by Malcolm Bates and a swift response to his
recommendation that such a guide needed early publication.

Mr Robinson said;

     "The hardest part of any project is knowing where to
start.  For anyone from the public or private sector setting
out on a PFI project, this guide provides answers to the basic
questions.  It will save time and effort by helping make sure
that projects are properly thought out from the start.

     "The guide will prove to be a useful tool.  It describes
each stage of the process, indicates what appraisal needs to
be done and what decisions need to be taken.  A sound project
requires a robust business analysis.  The business case will
develop with the project but to smooth out and speed up the
process it is important to know what to do at each stage.

     "With the review,  we laid the foundations on which the
public and private sectors can build long-term relationships. 
The publication of this guide is evidence of our commitment to
seeing the recommendations through and build value for money
partnerships with the private sector which will benefit us
all."



Notes to Editors

1.   The Government announced on 8 May that Malcolm Bates had
been appointed to carry out a review of PFI.  The review was
published on 23 June and the Government accepted the
Government accepted the conclusions as an agenda for action. 

2.   If you have access to the Internet you can find this news
release at http://www.hm-treasury.gov.uk.  Material on other
Treasury issues can also be found at this site.