C15 The PwC study represents a useful contribution to the debate about the costs of private sector finance. It points out the importance of taking account of risk in comprising public private finance costings, the reduction in the cost of private sector finance over time and a number of factors which may keep bid returns higher than ideal.
C16 However, it remains to be seen whether in practice the outturn returns achieved of PFI schemes match the rates of return bid at their inception. It will take time for more evidence to emerge before a judgement can be made about whether:
• the risks of PFI Special Purpose Vehicles (SPVs) match those of regulated utilities; and
• the actual returns achieved differ significantly from those bid.