8.4  Experience has shown that the mature market in funding conventional PFI projects has largely settled with little sign of continuing innovation.

In these circumstances, undertaking a PBDFC after the selection of PB should reduce pre-selection bidding costs for participants and shorten the timetable to the selection of PB. Allied to which, there is very little evidence in conventional PFI selection criteria that funding structures or lending margins have been significant factors in the selection of a PB. The more compelling evidence is that, in the majority of cases for conventional PFI, the selection of senior debt providers has become very price sensitive. PFI standardisation appears to have reduced the capacity for lenders to differentiate themselves as between the terms upon which finance would be made available. Innovation by the lenders in financial structuring is still possible as part of the PBDFC.