Source · Select Committees · Public Accounts Committee
Recommendation 30
30
Accepted
Inadequate data access hinders public authorities' effective oversight of PFI projects
Recommendation
One of the underlying principles of the PFI model was its design to be self-monitoring, with the project delivery company responsible for reviewing its own performance and reporting back to the contracting authority. But this self-monitoring should not preclude authorities from having appropriate access to data and information to support their own monitoring of projects to ensure that contractual obligations are being met.70 We asked NISTA what it was doing to support public authorities with contract management. NISTA told us about issues with schools in Stoke-on-Trent, where the conditions of assets were not acceptable, but NISTA managed to work with the private delivery partner to secure 64 Q 60 65 Q 54 66 C&AG’s Report, para 4.19 67 Q 32; C&AG’s Report, para 4.21 68 Q 56; C&AG’s Report, para 4.20 69 Qq 3 and 73 70 Qq 60 and 68; C&AG’s Report, para 4.7 18 a £30 million asset improvement fund.71 Additionally, the Treasury and NISTA committed to acting on the lessons learned including, a commitment to ensuring that construction is monitored by a clerk of works and independently certified.72 71 Q 73 72 Q 49 19
Government Response Summary
The government states the recommendation is implemented, detailing NISTA's PFI Contract Management Programme which provides support for contract expiry, asset condition surveys, expanded contract management support, and new guidance to be published in 2025.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 NISTA, formerly IPA, set up a PFI Contract Management Programme in 2020 to support contracting authorities managing their PFI projects. NISTA’s Contract Management Programme supports authorities in a number of ways, including: • Expiry: NISTA supports contracting authorities with projects approaching expiry through training, guidance, direct advice and support and assurance. Working alongside departments, NISTA will engage with contracting authorities around seven years from expiry to set out all the expiry-related resources available and will provide an early support package to help ‘kick-start’ expiry planning. • Asset Condition: Following on from the publication of the Asset Condition Playbook, NISTA will undertake surveys across a wide-ranging assets which will provide data to better understand the assets in the PFI legacy portfolio and drive improvement in asset condition, It also gives NISTA the opportunity to improve central support for public bodies in assessing the state of their privately financed assets. • Contract Management Support: NISTA is expanding its engagement across the legacy PFI portfolio through the introduction of contract management support reviews for operational projects. NISTA is also broadening the range of skills in its pool of PFI experts to ensure that it can provide direct support to public bodies across a range of disciplines, including technical, commercial and financial. • New Guidance: NISTA will be publishing contract and performance management guidance later in 2025 to help contracting authorities improve their management of the contract and performance. This will address prior concerns raised by the NAO and the Committee and, in turn, strengthen authority’s abilities to enforce contract terms including on asset condition.