The first private finance initiative (PFI) and public private partnership project (PPP) deals in progress under the Partnerships UK banner was unveiled yesterday by Andrew Smith, Chief Secretary to the Treasury and James Stewart, its Chief Executive, as the minister declared Partnerships UK "open for business".

Mr Smith said that such projects would make significant contributions to the modernisation and strengthening of Britain's public services.

Speaking at a Partnerships UK conference in London, Mr Smith said: "Partnerships UK has got together a first rate team who are capable of delivering the Government's vision on public private partnerships into the next decade. The private sector skills they offer will help in the drive to deliver improved public services across the country in many of the Government priority areas. With Partnerships UK now open for business I am sure they will be at the cutting edge of project improvement and development in the coming months."

Among the projects under discussion between Partnerships UK and Departments and Authorities are the London City Airport extension of Docklands Light Railway, primary schools in Glasgow, a Staffordshire street lighting project and Barts and London NHS Trust.

Partnerships between the public and private sectors are a cornerstone of the Government's modernisation programme. By drawing on the best of both public and private sectors, public private partnerships can help the public sector to deliver modern, high-quality public services.

Public private partnerships bring with them new challenges which require specialist skills and expertise. Partnerships UK has been formed to help the public sector meet these challenges. Its mission is to work with the public sector to make PPPs better, stronger and faster.

The CBI welcomed the opening of Partnerships UK for business. Charles Cox, Chairman of the CBI's Public Procurement and Efficiency Committee, said: "Two important CBI priorities have been met in the way Partnerships UK has been designed. It will have the financial motivation to deliver a stronger PFI deal flow and faster deal closure. And it has been recognised that Partnerships UK should not take an equity stake in any PFI project unless all parties to the deal agree on this. This should give the market confidence that Partnerships UK will add value without distorting the market."

Anna Lagerkvist