Isle of Wight looks for £2m PFI savings
0Isle of Wight Council has hired a consultancy to review a £720m PFI contract in a bid to find £2m in savings.
The council has called in both the consortium running the joint venture – Vinci Concessions, Meridiam Infrastructure and Ringway – and the consultants that set up the contract six years ago.
The council wants to settle contractual disputes that have arisen and make savings of £2m per year.
The contract is for Island Roads Services – the joint venture’s name – to overhaul roads, streetlighting, bridges, cycleways and other highways assets. The 25-year deal was signed in April 2013.
Jasmine Consulting has now been called in to “agree a deliverable cost reduction programme”.
As part of its budget, the council is set to invest £43m in capital projects in 2019/20 but has also set a target of saving £5.5m.
Explaining the authority’s budget plans, council leader Dave Stewart said: “We have a clear strategy to keep the council financially balanced and sustainable.”
