5.26 Over 510 PFI projects with an aggregate capital value of £45.1 billion are now operational. A major survey of operational PFI projects was carried out in 2005-6 by Partnerships UK4 and published in PFI: strengthening long-term partnerships. This survey showed a high level of satisfaction among public sector managers with PFI projects. Also, a National Audit Office (NAO) report in 2008, Making changes in operational PFI projects, found that PFI contracts offered sufficient flexibility to manage the changing demands of public sector authorities. Box 5.3 summarises some of the key findings of this research.
| Box 5.3: Performance of operational PFI projects • PFI is meeting the expectations of users. Public sector contract managers report that 96 per cent of projects are performing at least satisfactorily, with 66 per cent of projects performing to a good or very good standard. Users believe that service standards were met always or almost always in 79 per cent of projects. • Payment and performance mechanisms are effective. Payment deductions have been relatively low as contractors are generally meeting the required service levels under the contract for most projects and have generally been effective in stimulating performance where they have been levied. • Public/private sector relations are working well. 97 per cent of public sector contract managers rated the relationship with their private sector counterpart as satisfactory or better, with 72 per cent rating it as good or very good. • PFI deals are offering sufficient flexibility to the public sector. Contractors handle urgent requests in a timely manner and 90 per cent of contract managers are satisfied or very satisfied with the quality of work done to implement changes. Sources: Report on Operational PFI Projects, Partnerships UK, 2006 and Making Changes in Operational PFI Projects, NAO, 2008 |
5.27 PFI projects in operation are supported by the Treasury's Operational Taskforce (OTF) based at Partnerships UK. The OTF helpdesk provides support to public sector managers seeking advice from its team of experienced practitioners across a wide range of issues. The Taskforce has also organised training and events for public sector contract management staff. Additionally, the OTF has carried out assignments to support individual projects. This work has included small variations, mergers of major departments, re-competition strategy, termination options, benchmarking of soft services, assistance with the development of change protocols and a number of pilot Operational Reviews.
5.28 For local government PFI projects additional support is provided by the 4ps (Public Private Partnership Programme, an organisation sponsored by the Local Government Association) through a programme of training, sector-specific reviews and the creation of networking groups to share best practice. Departmental private finance units (PFUs) also provide support to operational projects.
5.29 The Government remains committed to supporting, and driving value for money in, operational PFI projects. The Treasury intends, during 2008, to commission a survey of the current position of operational PFI projects and the issues they face. It will use the results of that survey to inform its consideration of how support to operational projects might be strengthened. The OTF will also support the Treasury's moves to manage the PFI supplier market more proactively through a structured programme of engagement and dialogue. In due course the OTF will broaden its remit to provide support to the full range of PPP projects as they become operational.
4 Report on Operational Projects, Partnerships UK, 2006