20
Accepted
In its written evidence to us, Affinitext told us that the primary objective of withholding...
Conclusion
In its written evidence to us, Affinitext told us that the primary objective of withholding annual payments was to ensure contractual compliance rather than maximising cash savings for the authority through imposing high penalties. It explained that if the process of withholding payments, which can take place many years before contract end, is seen by both parties as a means of “catching the other out,” this could damage relationships before the really challenging aspects of expiry need to be faced.49
Government Response Summary
The government agrees with the committee’s point and states the IPA intends to develop a protocol with investors by Summer 2021. This protocol will outline how PFI investors should operate during expiry, including transparency and contractual compliance.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
7.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2021 7.2 The IPA confirms it intends to develop a protocol with investors that outlines how PFI investors should operate during the expiry process, including requirements for transparency and compliance with contractual obligations. The IPA will write to the Committee outlining the further steps it is taking to achieve this.
Source
Committee
Public Accounts Committee
Report
Fifty-First Report - Managing the expiry of PFI contracts
19 Mar 2021
HC 1114
Addressee Bodies
HM Treasury
Timeline
Recommendation age
5.4 yrs
Report published
19 Mar 2021