5 This report provides information on managing PFI contracts as they come to an end and considers whether government is making appropriate preparations to manage the expiry of PFI contracts. Most PFI contracts expire from 2025 onwards, meaning there has so far only been a limited number of practical examples to learn from. As a result, we surveyed 107 of the 571 English PFI contracts that have or will expire over the next seven years and received 75 responses. Of the 107 contracts surveyed, 89 PFI contracts were still operational at the time the survey was conducted, and 18 had expired. Our fieldwork was conducted before the outbreak of COVID-19, so we do not assess the potential impacts on the expiry of PFI contracts.
6 The purpose of this report is to draw out the challenges and best practice that can most benefit those managing PFI contracts coming to an end. Throughout the report we have identified illustrative examples from specific PFI contracts. Although not representative of the full survey population, they provide helpful prompts to draw the reader's attention to some of the potential risks authorities may face, enabling preventative steps to be considered. This report is not intended to conclude on the value for money of individual contracts.
7 The report structure is as follows:
• Part One sets out the background to PFI, the contracts which are due to expire, and the roles and responsibilities of key stakeholders;
• Part Two examines the skills and capabilities of authorities for the expiry process and aspects of day-to-day management of the contracts relevant for the preparation process;
• Part Three examines the preparation for and delivery of contract expiry; and
• the Appendices set out our methodology, list of the 10 largest PFI contracts expiring in the next 10 years and the National Audit Office's (NAO's) catalogue of past PFI reports. The results of our survey are published separately.