Wates Group is urging ministers to revive private finance initiatives to help fund the next wave of public infrastructure, warning that without private cash the UK can’t build the schools, hospitals and housing it desperately needs.

The contractor unveiled a new “Alliance Investment Model” at today’s Real Estate Investment and Infrastructure Forum in Leeds.

Wates CEO Eoghan O’Lionaird said it was time to ditch the stigma around PFI and unlock pension fund investment to drive economic growth.

“The government is facing an acutely challenging fiscal picture,” he said.

“To finance infrastructure delivery, it must access private capital to move at the speed required and drive economic prosperity.”

Wates’ plan aims to improve on the old PFI system by offering co-ownership, greater transparency and shared risk through a special purpose investment vehicle.

The white paper sets out five key demands for a rebooted public-private partnership approach:

• Projects must focus on assets worth over £100m

• Delivery partners must be financially robust and proven

• Standardised designs must be used to cut cost and time

• Risk and reward should be shared fairly between public and private sides through SPVs

• A new oversight body should sit under the National Infrastructure and Service Transformation Authority

Wates argues its model mirrors successful schemes already working in Scotland and Wales – and is the only viable way to build critical infrastructure at scale without blowing public budgets.