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PFI deal retenders

Language: English Series: Contract Journal ; 398 (6227) 26 May 1999, 1(1)Publication details: 1999Subject(s): Summary: Government plans to introduce new accounting rules may mean local authority private finance initiative (PFI) deals have to be renegotiated. Currently PFI deals must pass the 'contract structure test' which dictates that at least 20% of the the contractor's income from the contract must be at risk against poor performance or a low level of usage. The DETR is considering replacing this with a more rigorous accounting analysis based on the Accounting Standards Board's recent ruling that PFI deals must be on-balance sheet.
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Item type Current library Call number Copy number Status Barcode
News article London News article WB3520-12 (Browse shelf(Opens below)) 1 Available 93615-1001

Government plans to introduce new accounting rules may mean local authority private finance initiative (PFI) deals have to be renegotiated. Currently PFI deals must pass the 'contract structure test' which dictates that at least 20% of the the contractor's income from the contract must be at risk against poor performance or a low level of usage. The DETR is considering replacing this with a more rigorous accounting analysis based on the Accounting Standards Board's recent ruling that PFI deals must be on-balance sheet.