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<p>Highways England has no plans to fundamentally review the terms and conditions
of its private finance initiative (PFI) road maintenance contracts, including the
costs payable under those contracts.</p><p> </p><p>Highways England has previously
reviewed its PFI contracts and concluded that cancelling or attempting to change them
is unlikely to offer value for money. It should be noted that eight of Highways England’s
eleven contracts in place are due to end in 2026/27.</p><p> </p><p>Highways England
manages the costs due to its PFI providers strictly in accordance with the contracts
and has taken advantage of cost saving opportunities where possible, for example through
project re-financings. In 2018, the largest of its PFIs, the M25 contract, was refinanced
achieving annual savings for each year of the remaining contract period of around
£10 million.</p><p> </p><p>Highways England undertakes monthly and annual performance
and financial assessments to ensure all charges levied by PFI Companies are compliant
with the service level that is required to be provided under the contract.</p><p>
</p><p> </p><p>Should service levels not be achieved, then in line with contractual
payment mechanisms, deductions are applied and appropriate mitigating actions agreed
to address any deficiencies.</p><p> </p><p><strong> </strong></p>
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