2 Contract price

7.  The Department estimates the net present value of spending under the PPPs over 30 years to be £15.7 billion. The ultimate price of the deals is unknowable, since the contracts are re-priced every 7½ years. The reward premiums available to the private sector shareholders and funders reflect those of a high risk project rather than the limited risk to which they are exposed in these deals.12




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12  Qq 5, 14-16, 25-27, 123, 182-183

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