Forward

Forward by Matthew Vickerstaff Deputy CEO & Head of Project Finance

I am delighted to provide the forward to the PFI Centre of Excellence's analysis of the first 52 PFI Expiry Health Checks completed in 2021/22.

The PFI Centre of Excellence was established within the Infrastructure and Projects Authority in 2020 to build the capability, knowledge and tools needed within the public sector to manage their PFI contracts effectively during the operational and expiry phases, and to ensure effective engagement with the private sector.

PFI contracts provide significant public services including schools, hospitals, social care services, waste services, road, housing, prison and military capability. As such, it is vital that these contracts are effectively managed through their life to ensure the public gets the services they need and for which they are paying. This is equally important at expiry where significant value can be protected through effective expiry management and continuity of public services ensured.

The IPA offers all PFI projects within 7 years of expiry an initial expiry health check, with further reviews at 5 and 3 years. The health check involves a review by the IPA of key project documentation and a structured interview with the contracting authority. The review uses a diagnostic tool to help assess and benchmark the project's readiness for expiry. We believe it is essential to have a tool that provides an objective and transparent assessment of readiness for expiry. The analysis from these first 52 health checks provides some vital lessons for the public sector. As such, I encourage everyone involved in the management of PFI contracts to read this report and incorporate the lessons into their plans.

We are here to work with public and private sector bodies, so please do contact us for support and advice. We have published Managing the Risks of PFI Contract Expiry that sets out the support the IPA's PFI Centre of Excellence offers to contracting authorities, including guidance documents, training, and expert advice and support.