Source · Select Committees · Public Accounts Committee
Recommendation 13
13
The IPA acknowledged that its existing team of experts was not enough resource to provide...
Conclusion
The IPA acknowledged that its existing team of experts was not enough resource to provide support to all 700 PFI contracts in a complex environment. Across the UK, 328 authorities are responsible for PFI contracts, with 182 authorities responsible for only one contract. In contrast, the 10 largest private investors in PFI owned more than 50% of the contracts. This concentration allowed the private sector to take a portfolio approach to managing the expiry process, which risks putting the public sector at a disadvantage. To address this, the IPA told us that it had requested from each department their strategies for managing the PFI contracts for which they are responsible. The IPA told us that it will work with departments, focusing on these strategies, to ensure that it was able to get help and support to the contract management teams within the authorities.34
Government Response
Acknowledged
HM Government
Acknowledged
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2021 1.2 The Infrastructure and Projects Authority (IPA) will publish a plan for supporting all authorities with PFI contracts. The plan will also set out a timetable for the publication of guidance notes on contract expiry and other matters. The Treasury and the IPA will jointly write to departments to encourage them to develop sector specific guidance where it will add value and to take part proactively in the PFI Contract Management programme.