3.1 MOT2 was a relatively early PFI project within Northern Ireland and the project team did not have the benefit of the extensive good practice guidance that was developed subsequently (see paragraph 2.1). Although only limited guidance was available at the time, we found that DVTA's project team had complied with much of what was later to be regarded as good practice in the procurement of PFI projects. We also found that, in compiling its final business case for the project in March 2000, DVTA took a number of important steps, including carrying out a review of significant project cost increases that had occurred since the appointment of the preferred bidder (see Appendix 1), and reappraising the affordability and value for money of the project. However, DVTA did not conduct any formal reviews, of the sort recommended in a National Audit Office (NAO) report, published in August 19995, to assess the ongoing viability of the project. Such reviews became a requirement (after procurement of MOT2) as part of the Office of Government Commerce's Gateway process.
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5. "Examining the value for money of deals under the Private Finance Initiative" (HC 739, Session 1998-99).