Early PFI schools failed to make the grade

Early Private Finance Initiative (PFI) schools were not built any quicker, any cheaper, or to better quality, than those built under traditional procurement, according to an Audit Commission report published today (Thursday).

The report, PFI in Schools, reveals that costs - both for construction and the running of schools - varied widely, with no clear difference between the two types of funding.

A comparison between traditionally funded new schools across England and Wales and 17 of the 25 early PFI schools concluded that although the technical quality of all schools fell below 'best practice', the PFI schools were, 'statistically speaking, significantly worse'.

The government has cited better value for money, design innovation, better risk management and the long term commitment of funding for maintenance as major advantages of PFI. But the study of the PFI schools opened up to September 2001 reveals that few of these benefits are evident and they will only be achieved if significant changes are introduced.

However, the Commission is confident that future schools constructed under the PFI route will be built faster, at a lower cost, with more tightly defined specifications.

It is also urging the government to consider allowing better-performing authorities to explore other funding options to PFI for the building of new schools.