Support to Contracting Authorities

The learnings identified in this report reconfirmed the need for the centre of government to play an active role in supporting government departments and CAs in managing PFI expiry. In August 2021, the IPA's PFI CoE set out its plans to provide expiry support in Managing the Risks of PFI Contract Expiry. The key offerings in our Support Plan are:

1	Expiry Health Checks The IPA will conduct EHCs on all projects at 7, 5 and 3 years from expiry to: • Assess the readiness of the project for expiry. • Provide advice to CA on how to improve their readiness for expiry. • Identify lessons across the PFI portfolio to be integrated into future activity.
2	Assurance of Action Reviews (AARs) Projects rated as Red or Red/Amber, or where the expiry risks are high, will be supported with an AAR, typically within 6 months of the EHC. The review will assess whether the actions taken have materially improved their readiness for expiry. AARs are a repeatable process designed to assist CAs in delivering a successful expiry of their PFI.
3	Expiry Guidance Expiry guidance will be published in early 2022 and will reflect the practical lessons and learnings from the EHCs. The guidance is intended to be supported by sector guidance developed by departments, as appropriate. The guidance will be supported by toolkits, for example check-lists and help-sheets. This support will be evolved over time reflecting our growing experience of expiry.
4	Expiry Training Expiry training is being developed and due to be launched late 2021.

5	Private Sector Engagement The IPA is actively involved in structured engagement on expiry with the market including investors, SPV managers and service providers, and with wider participants such as trade bodies, consultants and advisors. The primary aim is to share knowledge and build better relationships on behalf of CAs, recognising the private sector works across multiple sectors and projects.
6	Expiry Protocol A public-private sector protocol is under development and an initial draft is due to be shared with the private sector in early 2022 for discussion. The protocol will set out the behaviours expected of the public and private sector at expiry. It will be built on the principles of collaborative working, transparency, effective resolution of disputes and sharing lessons and best practice.
7	Expiry Advice IPA will provide strategic advice and support to CAs on PFI expiry. In addition, the IPA is working closely with Local Partnerships, Crown Commercial Services and the Complex Transactions Team to ensure practical support is available to CAs.
8	Systems Learning & Improvement Underpinning the IPA's PCMP is collaboration between the centre, departments and functions. A strong emphasis is placed on systems learning and information sharing to assist departments to recognise sector specific PFI expiry challenges and to formulate appropriate departmental responses.