Treasury appoints new head of PFU

Gordon McKechnie, a senior partner at Deloitte and Touche, is to replace Richard Abadie as head of the Treasury's private finance unit (PFU).

The long-awaited appointment will see McKechnie take up his post at the beginning of June.

Abadie was due to quit the Treasury post in December last year, but extended his secondment on a part-time basis, as the Treasury struggled to find a replacement.

Industry sources claim the delay in finding a new head for the PFU is due to uncertainty about its future role, following a major Treasury review of government procurement last year and the government's decision to put PFI/PPP schemes back on its books.

A leading PFI consultant said of McKechnie's appointment: "I am not sure this is enough to qualm the nerves of the PFI industry."

A Treasury spokesman insisted this week that the government was fully committed to its PFI/PPP programme. He added: "Gordon will head up the Treasury's PFI unit, providing advice on PFI policy and support on financing models, as well as advice on complex PFI projects."

McKechnie is also expected to take a key role in the Major Projects Review Group.