6.21 Once the JWA is established, it can make decisions on the procurement and entering into of any contractual arrangements. Where there are pre-existing PFI contracts, these do not generally allow a local authority to assign or transfer its rights or obligations under the contract without the consent of a contractor. However, a recognised exception is where the transfer takes place to another local authority with sufficient financial standing or resources, or another public body whose obligations are guaranteed by the local authority. A JWA would be considered a local authority for these purposes. This would normally only be feasible where the whole of the contract was being transferred.
6.22 When local authorities seek to establish JWAs, they will need to set out clearly specific details of any PFI contracts which are intended to be transferred (as set out in the Joint Waste Authorities (Proposals) Regulations 2008). In addition, details of any PFI credits in relation to such transferring contracts which have been awarded, need to be specified. Proposal should also include:
• The date of the award of the PFI credit;
• The local authorities that may share the benefits of those PFI credits;
• Any conditions contained within any letter awarding PFI credits;
• Details of any phasing contained within any letter awarding PFI credits; and
• Proposed arrangements for the transfer of the PFI credits to the proposed JWA.