Preparing for PFI expiry

In February 2022 the Infrastructure and Projects Authority (IPA) published its practical guidance “Preparing for PFI contract expiry”.

PFI projects have a standard contract length in the region of 20-30 years, many of those contracts were signed in the late 1990s. In England alone there are approximately 550 PFI projects, that number reaches approximately 700 in the UK in total.

Simple arithmetic tells us that lots of projects will start expiring over the next few years. There are two fundamental questions: (i) in what condition should the PFI asset (e.g. an NHS hospital) be handed back to the public sector, and (ii) what will the services such as cleaning, catering, and building maintenance look like in respect of that asset on day 1 after handback and contract expiry?

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