There are 527 PFI contracts in England that span across a range of sectors, including schools, hospitals, housing, street lighting, roads maintenance, leisure centres, libraries and defence. Future payments under these contracts are expected to total more than £100bn.

Recent experience has shown that PFI project distress can, if unaddressed, carry significant jeopardy for contracting authorities and private sector partners, particularly if they are unprepared, including:

• potential disruption to services;
• major disputes and litigation costs; 
• acceleration of contract expiry risk; and 
• significant losses and unbudgeted termination payments.

The guidance note provides a combination of: 

• technical information to SROsSenior Responsible Owners (SROs) and contract managers (e.g. on project company financial distress, insolvency and contract termination);
• practical guidance on the issues SROs and contract managers should consider in preparing their legal, commercial, financial and operational strategies and action plans; and, 
• directions to relevant IPANISTA support.