Trafford prepares to exit office PFI  

Officers recommend that the council’s executive approve the hand-back of the office-led Sale Waterside complex, delivered under a private finance initiative contract agreed in 2002.

The contract with Equans is due to expire in October 2028, and as a report prepared for Trafford’s executive meeting next week outlines, there are two options on the table:

• Exit the contract and take back the complex for the final “bullet” payment in the contract, also agreeing to purchase the two commercial units for open market value.
• Exit the PFI asset in October 2028, leaving the facility in Equans’ ownership.

Typically for the time, the Sale Waterside complex was delivered through PFI in 2003, combining the refurbishment of the 1915-built Sale Town Hall along with an expansive new-build element, which accommodates close to 700 staff.

As well as office space, the complex houses a resident service centre, arts and cultural facilities, commercial retail units, and saw the regeneration of canalside public realm.

Allowing public bodies to trigger large-scale projects through private sector partners who were paid over 25 or 30 years, PFI was pursued most notably by the Blair/Brown Labour governments from 1997 onwards, before coming under fire and finally being ditched by government in 2018.

As set out in the report, Trafford has performed a financial analysis, including a valuation of the building, the exit payment and operating costs, and the recommendation is to take back the building and make the final payment to Equans, also buying the commercial units – financial details are only included in the confidential section of the pre-meeting report.

The current PFI arrangement requires the building to be handed back in working order as per the contractual standard – from October 2028 liability for the asset will sit with Trafford Council including full maintenance and repair across the site – to reduce exposure, a final condition survey will be undertaken in 2027 to reduce any potential asset liabilities carrying forward into 2028.

Along with Trafford Town Hall, Sale Waterside is one of the main bases for the council. The office element at the site has 667 desks, 419 of which are utilised by council staff, from teams including exchequer services, procurement, and internal audit; children’s services teams; adult  services teams; and neighbourhood teams.

A further 248 desks are used by NHS staff from NHS Manchester University Foundation Trust, Greater Manchester Mental Health Foundation Trust, and Cheshire & Wirral Partnership Foundation Trust.

With Sale Waterside’s facilities management contract doue to expire in 2028, Trafford is exploring the option of a short-term FM services contract with the firm to provide continuity of service and alignment with the wider Amey contract for FM services in existing council buildings, which expires in 2030.

A new fixed-term contract officer joined Trafford Council in June to support all aspects of preparation for exiting the PFI.