Liverpool library PFI sold on

THE £50m public finance initiative (PFI) deal to revamp and maintain Liverpool’s central library has been sold on to an investment fund.

In a statement to the stock market yesterday International Public Partnerships (INPP) said it had paid £10.8m for a majority stake in the project along with eight NHS Lift schemes in the South and the Midlands which handle the development of primary healthcare facilities.

Liverpool City Council agreed the original 25-year deal last July with the Inspire Partnership, a joint venture between York-based Shepherd Construction, which holds 19.9%, and London’s Amber Infrastructure which has the balance. INPP has only bought Amber’s share.

The contract involves the restoration of the Grade II-listed parts of the building and the replacement and refurbishment of extensions added in the 1950s and 1970s.

Under the PFI, private-sector firms cover the cost of the work and the local authority pays them back over an extended period, both for the construction and ongoing management. Many schemes are sold on to funds like INPP which promise investors stable returns because of the secure nature of their income.

INPP director Giles Frost said: “The projects further underline our long-term commitment to investing in UK social infrastructure and the excellent investment pipeline in place for INPP.”

INPP, which is listed on the FTSE 250 index, was established in 2006 as Babcock & Brown Public Partnerships. It changed its name in June 2009.