Value for Money and Affordability of the Reference Project

The Local Authority has completed a financial evaluation to establish the likely costs of the Reference Project.  A comparison of the costs of traditionally procuring the project, the Public Sector Comparator (PSC), with the PFI Reference Project has demonstrated that the chosen route clearly offers Best Value.  The costs of the Reference Project were estimated by the Local Authority using its own information, the results of a soft market sounding exercise with private sector suppliers, and have been compared with the anticipated costs of similar schemes in other Local Authorities.

[The NPV of the PFI Reference Project is £ • million].
The Local Authority has also assessed the affordability of the PFI Reference Project [taking into account the additional revenue support that will be available to the Local Authority from the PFI Credit awarded to the [insert name of project].  This assessment has shown that the Reference Project is affordable to the Local Authority.