3.8 In line with current PFI guidance, the Trust undertook a financial comparison to compare the costs of the PFI bid with the estimated costs of providing the same level of service using conventional procurement. It compared the net present value (NPV) of the unitary payments under the PFI deal to a public sector comparator (PSC), adjusted for risks transferred under the contract. The final comparison showed that the estimated cost of the PFI deal is slightly lower than the PSC. This is, however heavily dependent on the estimated value of risk transfer (Figure 11).
11 |
| The Trust's financial comparison of the PFI deal as approved by the Department in January 20011 | ||
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| The figure shows that the estimated cost of the PFI deal is £5.5 million less than the PSC | ||
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| PFI Deal | Public sector |
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| 35 years pre-risk adjusted | 984.1 | 976.5 |
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| Risks transferred | -0.6 | 12.5 |
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| Total risk adjusted | 983.5 | 989.0 |
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| Total difference | 5.5 |
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| NOTE 1. Clinical services are outside the scope of the deal, but the Trust included identical clinical costs on each side of the calculation in line with the Department's guidance. The pre-risk adjusted NPV of the unitary payments for the project over 35 years is £123.8 million. The public sector comparator was £129.3 million. Source: The Trust | ||