Key issues:

The 'Skills transfer' issue that is discussed in Chapter 3 has been merged into 'End of Concession hand-over'.

The usability (condition) of assets over their entire lifecycles can become a serious issue for government (Edwards et al 2004: p.123) if they are not properly managed or physically maintained. Assets could thus deteriorate prematurely and be rendered 'unfit for purpose'. This can reduce VfM outcomes particularly if the public partner has to absorb the cost of major repairs or replacements soon after the project hand-over stage (expiry of concession) is complete. Furthermore, the failure to transfer knowledge and skills from the private to the public partner in a timely manner may result in the payment of fees to external advisers for longer than necessary and may reduce opportunities for broadening public sector knowledge that could drive down costs and increase skill levels over the long-term, or be applied to other PPPs. See Table 6.16 for identified sub-issues and case study examples.

Table 6.16 Sub-issues Arising From End of Concession Hand-over.