The purpose of the national methodology

• Discounted cashflow analysis is required to compare differing Public Sector Comparator (PSC) and bid cashflows on a consistent basis.

• The National PPP Guidance provides a methodology for determining the discount rates to be used in making this comparison and determining whether PPP delivery offers value for money.

• This discount rate methodology is not appropriate for use in making the investment decision - that is, it is not appropriate for deciding at business case stage whether the investment has merit and should proceed.