All value-for-money assessments must necessarily consider alternative available contractual and funding structures which include appropriate risk management arrangements to ensure a value-for-money procurement outcome.
For the reasons outlined in Question 3, private finance is viewed as likely to be the most appropriate method of funding for large residual waste infrastructure, involving process or combustion engineering technology where the risk profile may be considerably higher than for lower risk or lower value assets.
The position in relation to these lower risk or lower value assets, such as land or Household Waste Recycling Centres may be different. The budgetary contingencies, procurement and project skills, resources and management needed to deploy public finance (e.g. Prudential Borrowings) successfully in support of these investments is more likely to be held within the core resources of major Authorities.
There are a number of reports and guidance notes available from NAO and HMT which cover the use of private finance in public procurement. Links to some of these studies are included in Appendix 1.