PUK TO PLAY KEY ROLE IN STRENGHTENING PFI PARTNERSHIPS

27/03/2006 Partnerships UK is to lead a PFI Operational Taskforce, established by HM Treasury, to support procuring authorities and their PFI project managers in delivering effective contract management in the operational phase of contracts. This operational work underpins its existing role in providing key expertise and skills to the public sector involved in the government’s infrastructure building and management programme aimed at strengthening PFI processes in procurement. The formation of the Operational Taskforce is set out in the Treasury’s PFI document ‘PFI : strengthening long-term partnerships’. It has been established in response to the operational survey work of PFI projects conducted by Partnerships UK on behalf of the Treasury to identify core issues in the implementation of PFI contracts. Key features of the Operational Taskforce will include:

setting up a small unit staffed with PUK’s PFI experts across finance, law and operational management - and located at PUK;
an operational help desk helping the public sector resolve contractual issues;
the development of guidance in areas such as benchmarking, market testing, payment and performance mechanisms and contract variations;
absorbing the work of the Re-Financing Taskforce;
undertaking a pilot scheme of operational reviews in collaboration with OGC.

Speaking about its formation Partnerships UK’s Chief Executive James Stewart said: “The Operational survey demonstrates that PFI is working well and delivering long term services to the public. “With over 500 projects now in operation the formation of the Operational Taskforce is a natural springboard to further strengthen the public sector’s management of these long term contracts, increase professionalism and deliver value for money long-term contracts.” HM Treasury’s publication ‘PFI : Strengthening Long-Term Partnerships’ highlights two areas where further improvements can be made in the PFI process in increasing the operational flexibility of existing projects and in reinforcing the public sector’s PFI procurement professionalism. Partnerships UK plays a key role in both areas. Key findings of the Partnerships UK’s survey in operational projects found that over 80% of all users of PFI projects are satisfied, that 90% of PFI projects are meeting contracted standards and that incentivisation is working. That demonstrates that PFI is delivering in practice. In taking forward contract support work in implementation, Partnerships UK will follow the policy direction and work priorities set by the Treasury. Partnerships UK will also have a role in sharing knowledge of PFI project management and ensuring public sector professionalism in PFI. By assisting departments’ Private Finance Units, Partnerships UK will ensure that experience and knowledge of complex procurement projects can be retained and deployed on different projects across the entire public sector. Partnerships UK has, for five years, been providing a network of skills and expertise to the public sector as part of the Government’s infrastructure renewal programme. The addition of this contract management role in the operational phase is a natural progression of its role aimed at further strengthening PFI procurement. NOTES TO EDITORS

Partnerships UK’s operational survey ‘Report on Operational PFI projects’ was published on 22 March 06 and is located on its own website www.partnershipsuk.org.uk;
The announcement of the setting up an Operational Taskforce was announced by HM Treasury in its PFI document ‘PFI: strengthening long-term partnerships’, published on 22 March 06 and located on its website www.hm-treasury.gov.uk ;
Press enquiries to Malcolm Graves at HM Treasury press office on 020 7270 5161 or Malcolm.graves@hm-treasury.gov.uk.

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