1.4 Value for money
Describe how value for money was achieved and the key drivers for this result. This analysis could include:
• quality of service delivery;
• design amenity;
• sustainability of the arrangement; and
• other value-for-money elements (including transfer of unquantifiable risks) that cannot be quantified in the Public Sector Comparator (PSC).
The total PSC amount and headline components underpinning this amount should be included as detailed in Table 1.
Table 1: Value-for-money comparison - public sector versus private sector delivery
| Public Sector Comparator (PSC) | Private sector delivery (at financial close - net present cost of contract payments) | |
| Estimated net present value of the financial cost of the project (PSC)* | $ (mean of PSC cost estimates) | $ |
| Estimated savings through comparison with winning bid | % | |
* excluding State Retained Risk
| Capital costs | Operating costs | Revenues (if applicable) | Raw PSC | Competitive Neutrality | Risks | Total PSC |
Notes to table
1. All numbers are expressed in net present values as at [date].
2. In accordance with the national PPP Guidance, a discount rate of [ ] % was used in calculating the net present value of the PSC and its components, and a discount rate of [ ]% was used in calculating the net present cost of private sector delivery.
3. The format and content of the table may need to change to reflect differing circumstances of projects.
4. Excludes State Retained Risk.
The final content of Table 1 will be approved by the Treasurer and the portfolio Minister responsible for the individual project in light of commercial-in-confidence considerations.
Figures released as part of the value-for-money statement should be consistent with the figures reported in other government documents. The Department of Treasury and Finance can provide separate advice on this.