PFI may collapse due to EU directive
PFI may collapse due to EU directive
- 2001
- New Civil Engineer 5 July 2001, 8(1) .
A proposed European Commission procurement directive, expected in November 2001, will ban public sector clients from holding detailed discussions with a single preferred bidder. Designed to eliminate corruption in the construction sector, the new process will mean a two to threefold increase in bidding costs. This is likely to be too great a financial risk for most companies. Major UK contractors warn that the private finance initiative could therefore collapse unless the proposed EU directive is stopped.
PFI
EU DIRECTIVE
BIDDING PROCESS
A proposed European Commission procurement directive, expected in November 2001, will ban public sector clients from holding detailed discussions with a single preferred bidder. Designed to eliminate corruption in the construction sector, the new process will mean a two to threefold increase in bidding costs. This is likely to be too great a financial risk for most companies. Major UK contractors warn that the private finance initiative could therefore collapse unless the proposed EU directive is stopped.
PFI
EU DIRECTIVE
BIDDING PROCESS