CGU meaning

In practice, CGU means the Central Government Unit within HM Treasury created under the pf2 model to take and manage a public sector equity stake in PF2 public‑private partnership (PPP) projects. It is not a statutory or case‑law term; it derives from HM Treasury’s PF2 policy and appears in procurement documents, project agreements and shareholder agreements. Key legal features: the CGU acted as the UK central government shareholder in the PF2 project company, typically holding a minority equity stake alongside private investors, with associated governance, consent, information and dividend rights. Its participation was intended to improve transparency, align incentives and enhance scrutiny of lifecycle costs. Practical significance: bidders and contracting authorities needed to accommodate CGU rights in the shareholders’ agreement, address conflicts and reporting, and consider any CGU director/observer arrangements. Jurisdictional use: CGU related to UK central government PF2 procurements (principally in England). Devolved administrations (Scotland, Wales and Northern Ireland) and Ireland used different PPP models, so the term is not generally used in those contexts. Current status: In the 2018 Budget the UK Government announced it would no longer use PFI or PF2 for new projects. CGU references therefore arise mainly in legacy PF2 transactions and their ongoing contract management.