The MOD Private Finance Initiative Project Agreement version 1

a. MOD PFI PA v1. The document is approved by HM Treasury and in common with HM Treasury's Standardisation of PFI Contracts (SoPC) Version 3*, shares three main objectives:

• to promote a common understanding of the main risks encountered in a MOD PFI project
• to allow a consistency of approach and pricing across the range of MOD PFI projects
• to reduce the time and costs of negotiation for both parties to the proposed PFI contract

b. Guidance Notes to MOD PFI PA v1. These notes explain the background to MOD PFI PA v1, the reasons for some of its provisions, and to provide guidance on how to use these provisions. The guidance notes are not legally binding.

* SoPC3 has been superceded by SoPC4 which is the latest guidance from HMT (see Related Links). The MOD PFU is currently updating MOD PFI PA v1 to incorporate the changes. Any queries can be referred to the MOD PFU Front Desk (see Related Pages/Documents).