1.2  Higher negotiation costs.

In addition to the higher cost of capital, it seems that the cost of negotiating the contracts of PFI hospitals is higher than the cost of negotiating publicly-financed hospitals. As stated in my earlier written evidence, the PFI set-up costs at the NNUH totalled £32 million, about a fifth of the base construction cost of £159 million and more than 16% of the full development cost (£195 million).