Last edited 15 May 2018

Private developer scheme

A private developer scheme (PDS) is a form of public procurement in which the construction of a built asset is undertaken and funded by a private developer, but the asset is then occupied by the government, who pay rent to the developer for a minimum term under a leasehold agreement. The level of the rent is generally a function of the total development costs (including the land).

Private developer schemes are a form of partnering, which can sometimes involve the transfer of public land to a private developer. They are typically used to procure public buildings such as courts or hospitals. They are best suited to projects where the residual value of the development at the end of the lease is high.

Private developer schemes differ from private finance initiative (PFI) schemes in that the developer does not generally operate the completed development, and under PFI schemes, at the end of the lease, the development generally reverts to public ownership.

Private developer schemes may fall under the requirements of EU procurement rules. See OJEU for more information.

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