2.4 The allocation of risks to the parties best able to manage them is a key requirement in achieving value for money in PFI projects. Without risk transfer, the private sector partner will receive a secure income but may set their charges to earn a far higher return than would be appropriate. However, if the public sector partner seeks to transfer risks which the private sector cannot manage, then value for money will be impaired as the private sector will look to charge a premium price for accepting such risks. In this partnership, the practical implications of the risks involved were analysed thoroughly before the risks were allocated to the parties best able to manage them.