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Delay hits Manchester PFI Grouped Schools
08:52 25 Jun 2003
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A tangle of red tape is delaying Manchester City Council's
£50m privately financed Grouped Schools project. The delay
relates to recent changes to the way PFI credits are awarded, which
threatens to leave Manchester with a £2.5m funding
shortfall.
Manchester City Council has written to Vinci, Kajima, and Jarvis - the three shortlisted bidders - to warn them of the delay to the bidding process.
Invitations to negotiate were due to go out this month, but are now on hold until September.
Under the new rules, PFI credits will be awarded from the date of service commencement rather than from the date of contract signature.
Although the council's project falls under the new rules, the Department for Education and Skills (DfES) has ordered that the old rules still apply for one transitional year.
The council is arguing that under the old rules the project would face a shortfall in PFI credits. It is submitting a revised business case in the hope that the DfES will make up the shortfall.
The DfES was unavailable for comment as CJ went to press.
Manchester City Council has written to Vinci, Kajima, and Jarvis - the three shortlisted bidders - to warn them of the delay to the bidding process.
Invitations to negotiate were due to go out this month, but are now on hold until September.
Under the new rules, PFI credits will be awarded from the date of service commencement rather than from the date of contract signature.
Although the council's project falls under the new rules, the Department for Education and Skills (DfES) has ordered that the old rules still apply for one transitional year.
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The council is arguing that under the old rules the project would face a shortfall in PFI credits. It is submitting a revised business case in the hope that the DfES will make up the shortfall.
The DfES was unavailable for comment as CJ went to press.
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