In the next 10 years a significant number of the earlier PFI projects will come to an end. The government has now published new guidance intended to support public sector bodies in effectively managing the expiry of their PFI contracts.

The guidance also provides private sector investors, funders, asset managers and market suppliers with an understanding of the public sector's expectations and should assist in establishing shared expectations around contract expiry and the handback process. 

This guidance provides a framework and practical guidance for the management of the expiry process and includes a series of “toolkits” to support the navigation of asset related standards (including details on legislation and regulation, industry guidance and sector specific guidance), and provides a pre-survey information checklist setting out the information that may be needed in the scoping, planning and conducting the asset survey process.

Burges Salmon comment

The effective management of the expiry of PFI contracts, including the smooth handback of assets and service transition, is vital to ensure continuity of public services and to enable public services to remain resilient and fit for purpose. As such, it is important that both the public sector and private sector PFI partners start to plan for the expiry of their PFI contract to ensure a successful transition and it is to be hoped that the guidance will facilitate this process.