Public Sector Plc [ PSP] is an initiative established to provide the public sector with a new Public Private Partnership option. PSP is a hybrid solution offering the public sector additional skills and resources to enhance capacity with regard to obtaining greater value from public sectors property estate.
Public Sector Plc has its origins in the days of compulsory competitive tendering and a drive for outsourcing. Indeed, a core principle of the model is ‘insourcing’ using private sector funding to make the public sector better, not replace it. It subsequently became a Government initiative in the late 1990s and early 2000s.
The PSP model encompasses a step-by-step facilitation process coupled with robust and flexible governance arrangements. This enables local authorities to ensure they have met all their statutory legal and financial obligations. Use of this model enables a broad range of property projects to be delivered.
Public Sector Plc is focused on property in all its forms; operational, non-operational and investment. Use of the model can help Public Sector bodies to:
- Realise revenue savings
- Establish new or enhanced revenue income streams
- Generate improved levels of capital receipts from projects
- Make more efficient use of their property assets
- De-risk property transactions
- Benefit from value created by the private sector
It is a unique partnership model, NOT an Asset Backed Vehicle. This means that:
- PSP provides a funding stream to facilitate property projects
- An authority is not required to identify their assets up front
- There is no pre-determined project type that is sought
- The governance arrangements are set up to allow for projects to be assessed on a case by case basis
- Maximising value from surplus properties
- Supporting long-term regeneration strategies