PSC report section

Worked example section

1  Executive summary, including:

•  key project details

•  risk-adjusted PSC (simple probability valuation technique)

•  risk-adjusted PSC (advanced probability valuation technique)

•  risk distribution curves

Section 10

2  Purpose of the PSC report, including:

•  background

•  terms of reference

•  structure of the report

Section 11

3  Description of the project, including:

•  objectives

•  service need

•  the reference project and commercial development

Section 12

4  Financial assumptions, including:

•  discount rate

•  inflation

•  goods and services tax

Section 13

5  The Raw PSC

Section 14

6  Competitive Neutrality

Section 15

7  Identifying, allocating and evaluating risk, including:

•  methodology

•  risk valuation

•  sensitivity analysis

•  reality check

Section 16

8  Managing risk

Section 17

9  Review

Section 18