Operational Performance

4.22 It is difficult to assess the operational performance of PFI projects at this stage. The fact that all operational schemes are in the early years of long-term agreements of up to thirty years means that it is too early to draw far-reaching conclusions on this point.

4.23 Research by HM Treasury, and also by the NAO, has sought to gain some initial indication of operational project performance by surveying the opinions of public sector managers. HM Treasury asked respondents to indicate how far "overall performance of the private sector partner" was "matching up to expectations at the time of contract close".

4.24 Of the project sample:

• over three quarters of public sector clients described the performance of the project as 'as expected' or 'better' and one quarter of respondents said the project was 'far surpassing' their expectations; and

• 24 per cent of respondents reported performance as less than expected. Further research is being conducted into projects viewed as poorly performing to ascertain the factors involved and determine remedies.

4.25 These findings are in line with a November 2001 survey of 98 projects by the NAO, which focused more specifically on the Public Authorities' perception of value for money. Of those sampled, 81 per cent of public bodies involved in PFI projects believed that they are achieving satisfactory or better value for money from their PFI contracts. Only 4 per cent described value for money as 'poor'.