What Happens to the Project Company at the Expiry of UK PFI Contracts?

Directors of the special purpose vehicles created for PFI projects should be aware of the steps they need to take ahead of project expiry.

Almost 70 of the 500 PFI contracts will end in the next four years and generally involve the assets reverting back into public hands. Typically, PFI deals are structured with a special purpose vehicle (SPV) established to deliver the project, existing solely for the specific project contract.

Managing arrangements for expiry requires early planning, and consideration of the SPV's financial position is critical. When the project contract expires and the project is handed back to the public sector (the authority), the SPV's revenue stream will cease. What are the key practical considerations for SPV directors when the project nears the end of its contractual life?

In this course, you will learn to plan and execute the orderly closure of SPVs, focusing on critical aspects such as the statutory declaration of solvency, managing remaining debts and liabilities, and conducting a thorough analysis of the SPV's financial position. 

By the end of this course, you should be able to:

1. Understand the statutory declaration of solvency and its implications for SPV directors
2. Identify and address practical issues related to asset realization, creditor management, and contractual liabilities