Under the PF2 plans, the Government will take stakes in the joint ventures set up to deliver projects like privately financed schools.

It will also have a representative on the board of the joint venture to ensure transparency and keep tabs on individual PF2 jobs.

The Education Funding Agency is the first to use the new standard form equity documents for the privately financed element of the Priority Schools Building Programme.

Documents have already been issued to shortlisted bidders for the first two batches of schools.

Commercial Secretary to the Treasury, Lord Deighton said:”The government will now sit side by side with private investors as a real partner in PF2 projects, sharing some of the risk and the profits too, to form better partnerships with industry so we can deliver the next generation of public infrastructure the country needs.

The new standard legal documents set out the proposed terms of the Government’s investment, and will be used as a template for all future PF2 projects that involve public sector equity.

This includes details of the voting arrangements, the Government’s right to appoint a director to each company and increased information other shareholders will be required to disclose.

The Government’s new approach will provide the public with more visibility over who has a financial interest in its schools and hospitals by requiring investors to disclose the beneficial owners of their investments in PF2 projects.

The Government will receive detailed information on the performance and financial position of the PF2 companies, including profits made. The arrangements also incorporate the Government’s new policy regarding tax compliance and public procurements.

Chief Secretary to the Treasury, Danny Alexander said: “This is a fundamental reassessment of the old PFI and it will provide better value for the taxpayer, better public services, and a better infrastructure.”

“As a shareholder, the public sector will have a stronger voice in the management of the PF2 project company and receive a share of the financial returns.”