Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Local Partnerships recognised that in order to prepare for the expiry of PFI contracts, authorities...
Conclusion
Local Partnerships recognised that in order to prepare for the expiry of PFI contracts, authorities needed both to start early, but also to know what they need to do through each stage of the process.37 The IPA started developing guidance on managing PFI expiry in 2019, and we asked when it expected to publish this. The IPA told us that it planned to issue guidance and technical notes “over the next year” but was unable to give a precise date owing to the impacts of the covid-19 pandemic. We similarly asked the Treasury whether it expected departments to publish sector-specific guidance. It explained that 32 Qq 22, 69, 70 33 MPC0001 – Wiltshire Council, para 2 34 Q 15; C&AG’s Report, paras 8, 1.4, 1.16 35 Qq 16, 50 36 Qq 20–21 37 Q 20 14 Managing the expiry of PFI contracts this would be a matter for each department once overall guidance was available, but this could be a very helpful initiative given that some specific expiry issues could be common in similar types of assets.38 38 Qq 65–66; C&AG’s Report para 1.15, 3.15 Managing the expiry of PFI contracts 15 3 Relationship management during contract expiry Managing investor relationships
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.