Commercial Acceptability and Risk Transfer

The cost evaluation will involve a comparison of the annual Unitary Charge proposed in respect of each Solution with the PFI Reference Project developed for the project by the Local Authority.  In particular, cost will be assessed taking into account:

•  Any assumptions made regarding financial deductions applied under the Payment Mechanism

•  The credibility of service unit costs bid in response to the Output Specification

•  Any other aspects of the Solutions which are considered likely to have a cost impact in delivering services

•  Expected NPV of the risks transferred under each Solution

•  Sensitivity of different inflation assumptions.

[Insert other details as appropriate]