Justification for the PPP shifted from commercial exploitation of telecommunications assets to creating a long-term relationship with a single contractor

2.27  Industry appetite in the commercial opportunities associated with the NRTS fibre optic network was low because of a slowdown in demand and increased transmission capacity of the existing fibre optic cable networks. In addition, demand for mobile phone mast sites was being met by other land owners. By June 2002, the Agency no longer included third party revenue in its business case for the project. Justification for continuing with the PPP rested on achieving a long-term, strategic partnership with the private sector with appropriate risk transfer.

2.28  Between 2001 and 2004, there were several challenges to the PPP procurement route from senior managers within the Agency. On each occasion, the procurement team persuaded managers to accept the route on the basis set out above. From within the Agency, pressure to progress the telecommunications upgrade that was built into the proposed NRTS contract was growing in urgency. This was particularly so after Ministers brought forward a programme to replace the existing 32 police control offices with seven regional control centres, after motorists became trapped on the M11 following a snowfall during January 2003.