Private Finance Initiative contracts (FOI)
Private Finance Initiative contracts (FOI)Produced by the Freedom of Information office
Authored by Government of Jersey and published on 17 April 2019.
Prepared internally, no external costs.
Have the Government of Jersey entered into any Private Finance Initiative (PFI) contracts in the past?
If so, are these currently still in operation?
In the late 1990s, two States buildings, Morier House and Maritime House, were constructed using a “Head Lease and Leaseback” arrangement.
The arrangements involved the long term lease of land to a financial institution who were obligated under the head lease to develop buildings on the land.
The Planning and Environment Committee of the day then acted as development partner to construct the buildings on behalf of the financial institution, using funding provided by them.
A lease back arrangement was also put in place, and once construction was complete, the States occupied the buildings and paid the lease costs of occupation to the financial institution.
The lease and leaseback arrangement is now complete on Morier House, with Maritime House coming to completion shortly. At the termination of the initial leaseback period, the States option gives them the right to acquire the buildings at nil additional cost, and cancel the head lease arrangements.
The States is in the process of making these arrangements in the case of Morier House.