Lifecycle ‘significant issue’ for PFI review
Infrastructure UK’s cost review programme director, Alan Couzens, told delegates that these two elements had been “significant issues” in the responses received in the call for evidence, which closed in February.
There is a growing feeling that the lifecycle element of PPP deals will be dropped from the new model: in the recent announcement on the Priority School Building Programme, it was revealed that the maintenance of the new schools will remain with the public sector.
However, panellist Giles Frost, director at investor INPP, warned against removing lifecycle from future PFI deals altogether.
“If the government takes back lifecycle, it would end up with much more expensive buildings in the long-term, because they will not be maintained in the same way and will wear out more quickly,” he said.
Couzens also reiterated the Treasury’s position that the government is aiming to publish its response to the PFI review’s call for evidence before the summer recess.