Balance sheet treatment was a major influence on the Department's procurement process

2.19  The Department sought an arrangement under which the new and upgraded facilities would not appear on the Department's balance sheet. The Department, therefore, sought to transfer a substantial element of risk to the private sector. Securing the risk transfer prevented the Department from forcing resolution of its concerns over the design because it was of the view that to have done so might have reduced the amount of risk the private sector would bear, and result in the project coming on balance sheet.