2.27 It is good practice for the public sector comparator to identify, quantify and assess the timing and likelihood of risks occurring. The public sector comparator should be prepared on a comparable basis to the PFI bid and should explicitly take account of and compare the differential costs of risks between the two.
2.28 However there is no evidence that the Service formally quantified the respective risks of the public sector comparator and the successful PFI bid. The Service should have derived monetary values for as many risks as possible and explicitly calculated the value of risks which were being transferred to the private sector and those which were being retained by the public sector under the PFI deal.