Supplementary memorandum submitted by the National Audit Office
1. At the Evidence Session on 26 June 2002, the C&AG agreed that the NAO would submit to the Committee a note on two matters:
(a) an analysis of the increased financing costs of £60 million which had occurred between the selection of Modus as preferred bidder and financial close of the deal;
(b) an estimate of how the costs of the deal would have changed had it been possible to finance it at a cost of capital in line with public sector borrowing costs.