The NPD model retains the benefits of traditional PFI structures, such as:
• Optimum risk allocation
• Whole-life costing
• Maximised design efficiencies
• Robust programming of lifecycle maintenance and facilities management
• Performance-based payments to the private sector
• Single point delivery system, reducing interface risk for the public sector client
• Improved service provision
and also produces the following additional benefits:
• Capped returns ensure that a "normal" level of investment return is made by the private sector and that these returns are transparent
• Operational surpluses generated by the Project Company are reinvested in the public sector
• The public interest is represented in the governance of the NPD structure, which increases transparency and accountability and facilitates a more pro-active and stable partnership between public and private sector parties.