Much focus recently has been placed on preparations for PFI contract expiry. Approximately 200 operational PFI contracts are due to expire within the next 10 years, so this is an important topic for discussion. The quantity and value of PFI projects have highlighted the need for greater monitoring and input.
The public sector will benefit from contract management support and the Infrastructure and Projects Authority (IPA) has developed a PFI Contract Management Programme covering contract expiry, operational contracts, capability and advice and support.
In March Local Partnerships hosted an informative webinar on the subject, the recording of which can be found in the Resource Hub on our website. However, the need for assistance in all elements remains critical for successfully realising the value inherent in PFI contracts. There is now an opportunity for local authorities to seek revenue funding for such support via the IPA's Local Government Support Services Budget.
The £6m budget provides revenue support for local authorities to access dedicated and specialist PFI experience and expertise. Launched in September last year, the budget has already been used to fund targeted interventions at identified projects, and Local Partnerships has collaborated with these authorities.
With a straightforward application process and quick deployment of support facilitated by a fortnightly approvals committee, authorities are encouraged to consider any area in which their PFI project(s) might require assistance under four following headline areas of focus:
• expiry interventions
• better contract management
• operational interventions
• strategic issues
Where an initial consideration of these issues (and their applicability to an authority's project) is required, Local Partnerships has a wealth of experience in all aspects of the IPA offer and works closely with its team to identify projects capable of support. There may not be an obvious need, but most projects will benefit from structured support in key areas.
Early applications to access the budget are both more likely to be successful and will, of course, have more time to realise the value from any such intervention over the remaining project term.
If you would like a discussion about your PFI contract, please contact me at neil.okninski@localpartnerships.gov.uk
Neil Okninski is senior director of commercial at Local Partnerships
