The Private Finance Initiative

Part of 1. Questions to the Minister for Finance and Local Government – in the Senedd at 2:00 pm on 22 March 2023.

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Photo of Rebecca Evans Rebecca Evans Labour 2:00, 22 March 2023

Well, authorities are continuing to review their contracts to determine value for money, and contracting authorities that are undertaking reviews to renegotiate or to terminate a contract don't need Welsh Government approval to renegotiate or terminate that contract. Welsh Government does, however, review the business case, as we provide some revenue support cost for PFI initiatives. This stream of funding is considered as part of the value-for-money case for the overall public purse. So, in terms of Caerphilly County Borough Council, they have submitted a business case proposing the voluntary termination of their PFI contract for the two schools, as you just described, and I've approved the continuation of some revenue support for the remaining period that the contract would have run if the PFI continued. It is now for Caerphilly, of course, to make the decision as to whether or not it wants to voluntarily terminate.