MPC0001

Written Evidence submitted by Emma Brown, PFI Contract Lead - North Wiltshire Schools at Wiltshire Council

Wiltshire Council appointed a dedicated PFI Contract Lead in 2019 to oversee the NW Schools PFI Agreement. The NW Schools PFI agreement commenced in 2000 and expires in 2032.

In recognition of the complexities of PFI agreements focus was placed on seeking an individual with the following skill set:

• Contract Management Experience
• Legal Experience in an In-House Environment
• Project Management Skills (Essential)
• Commercial Skills
• Procurement Experience
• Knowledge of PFI (Ideal but not essential)

It is acknowledged that this is a broad range of skills, but we consider that an individual with such a skillset will help reduce or even negate the dependency on Consultants and thus reduce or eliminate associated consultancy costs.

Strategic planning is underway starting with the development of a timeline of activities that will be required to be completed commencing from 2022 up to the expiry date. A virtual team will be appointed within the Council and a communications plan will be established by 2022.

At the present time, Wiltshire Council’s PFI Contract Lead is actively engaged with DfE Private Finance Team who run regular (currently virtual) PFI Forums. The Private finance Team is developing a central team (funding approved) to provide support to Councils to effectively manage the Expiry of PFI Contracts. It is anticipated that Wiltshire Council will benefit from the guidance developed and provided by this centralised team.

Additionally, CIPFA the Chartered Institute of Public Finance and Accountancy provides an insightful course called PTN PFI Exit Strategies which is free to Councils that subscribe (subject to the subscription allowance for free courses not having been used up). This course identifies actions and the financial risks if the PFI Agreement is not managed correctly up to expiry. It is highly recommended that PFI leads, Finance, FM and Procurement Teams attend this online course for a thorough understanding of the risks.

The most critical requirement for success is for the relevant Council to have a Contract Lead who understands the PFI Contract(s) in detail, especially the obligations on the PFI Provider. It is through understanding the contract and enforcing the terms along with having an expiry strategy/plan for the last (currently recommended 7 years) of the contract and guidance from government departments such as the DfE Private Finance team, HM Treasury and the IPA (for example) that a smooth and successful transition will be achieved.

My final comment no Council should underestimate the work that will be required to ensure the PFI contracts (including any changes/amendments) are available, understood and managed irrespective of whether a consultant is employed.

January 2021