Managing PFI Assets And Services As Contracts End

On 5th June, the National Audit Office published its report on 'Managing PFI assets and services as contracts end'. Whilst there is a limited resource of 'lessons learned' from PFI contracts that have already expired, an estimated £3.9 billion of capital value PFI assets are due to revert to public sector ownership over the next seven years. This poses significant challenges and risks for the public sector at both national and local level, whilst also creating opportunities for knowledge sharing, capacity building, and streamlining processes.

In its key findings, the report flags that:

• the public sector does not take a strategic or consistent approach to managing the expiry of PFI contracts and risks failing to secure VFM during negotiations with private sector parties;