While the case for the NRTS remained positive, the rationale for using the PPP procurement route became more limited

2.26 When opportunities for commercial exploitation of the up-graded infrastructure fell away, the Agency reviewed whether a PPP was the most appropriate procurement route. The Agency's investment decision for a PPP came to rest on:

■ creating a long-term relationship with a single contractor that had borrowed money to upgrade the systems and was better placed than the Agency to manage the risks involved;

■ paying for services when they are delivered; and

■ a cost comparison that showed that the PPP was no more expensive than conventional procurement.

14	GeneSYS's bid fell by £2 million during the preferred bidder stage
Break down of GeneSyS's bid at award of contract		£ millions (2004 prices)
Unitary charges		242
Connection maintenance charges		16
Charges for called off additional works		126
			384
Break down of GeneSyS's Revise and Confirm bid
Unitary charges		253
Connection maintenance charges		27
Charges for called off additional works		131
Differences between the bids
Removal of the Camera Mast Service		(20)
Cumulative changes to the demand scenarios		(5)
			386
			(2)
Cost of changes in responsibilities between Revise and Confirm bid and contract award
GeneSYS's acceptance of responsibility for duct chambers in structures and cross carriageway ducts		6
Confirmation that responsibility for designated links remains with the Agency		(6)
GeneSYS's acceptance of responsibility for delays to called off additional works caused by other Agency employed contractors		4
Other changes in responsibilities		6
			10
Cost changes between Revise and Confirm bid and contract award
Base price date moved from April 2004 to December 2004		(6)
Interest rate lower than assumed in the Revise and Confirm bid		(5)
Sum of other cost increases		7
Sum of other cost decreases		(8)
			(12)
			(2)
Source: Highways Agency