PFI Expiry, start planning now for M&E transition
The Private Finance Initiative (PFI) is a United Kingdom government procurement policy where private firms were contracted to complete and manage public projects such as schools and hospitals.
Initially launched in 1992, the contracts were prevalent throughout the 1990s and early 2000s, the ability to finance projects using PFI was abolished in 2018.
The typical contract life of PFI contracts is 25–30 years; therefore, PFI expiry is beginning to be an important topic.
Recent guidance from HM Treasury’s Infrastructure and Projects Authority (IPA, 2022) advises that handback of assets from private ownership should be planned for seven years before the end of the concession period.
Asset handback and its transition presents multiple challenges including operational disruption, lack of service continuity and financial consequences so understanding the condition of the asset, including its M&E systems is therefore crucial.
This is where KJ Tait can assist, with experience in asset management we can help manage and smooth the transition before PFI expiry.
