1.26 The current fiscal environment requires all areas of public spending to be scrutinised for possible savings. Operational PPP/PFI contracts are not immune. Infrastructure UK has been working with both the public and private sectors to develop value for money options for reducing the cost of operational contracts.
1.27 Most PPP/PFI contracts are long-term arrangements involving complex risk transfer. It is important to ensure any measures that are adopted provide long term value for money, rather than a short term gain for the public sector.
1.28 The work is progressing through two strands - project-level work and central cross-industry engagement. Authorities are leading discussions on their own PFI projects supported by sponsoring departments and guidance soon to be published by Infrastructure UK.12 From the centre of government, Infrastructure UK has met with major PFI equity holders and others in the industry to help facilitate savings.
1.29 The HM Treasury Operational Taskforce now operates from within Infrastructure UK and is available to assist public sector bodies. It has a helpdesk to provide free expert advice to operational PFI projects (ph: 020 7270 5511). The savings work is one aspects of the Taskforce's role in helping authorities manage their operational contracts. It has also published guidance on the HM Treasury website in respect of Benchmarking and Market Testing, Project Transition Guidance, Variations Protocol and Contract Expiry Guidance13.
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12 Guidance will be published on the HM Treasury website shortly
13 http://www.hm-treasury.gov.uk/ppp_operational_taskforce.htm