Local Government: Private Finance Initiative

(asked on 3rd May 2018) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what procedures his Department has in place to (a) support and (b) audit local authority (i) procurement and (ii) management of private finance initiative contracts.


Answered by
Robert Jenrick Portrait
Robert Jenrick
This question was answered on 9th May 2018

The Infrastructure and Projects Authority (IPA) provides a wide range of support to authorities. The Green Book contains a set of methodologies and processes for all types of procurement, including PFI. Our standard form of PFI contract, SOPC, ensures certain core principles are followed in the design of PFI contracts. The IPA has also published a range of advice on managing PFI contracts, covering areas such as operational savings, refinancing and termination. Finally, the IPA offers bespoke advice to authorities, relating to procurement and contract management, on their request.

It is the responsibility of the sponsoring department to develop a policy for auditing the activities of local authorities.

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