13. Achieving value for money from private finance projects means getting the best deal in absolute terms. It also requires demonstrating, as a relative concept, that better value for money is being achieved than through other forms of procurement. That comparison depends on identifying a counter-factual or comparator project. This is difficult to do and may require comparisons based on a hypothetical comparator if, as is often the case, similar recent conventional projects do not exist.
14. We have yet to come across truly robust and systematic evaluation of the use of private finance built into PPPs at either a project or programme level. The systems are not in place to collect comparable data from similar projects using different procurement routes. Unless such systems are established, together with robust evaluation of the overall whole-life costs of alternative forms of procurement, Government cannot satisfy itself that private finance represents the best VFM option.