1.5.1 In response to criticism from a wide range of stakeholders, including the Public Accounts Committee, new PF2 introduces a range of measures designed around what is considered best practice in this area. These measures will increase the transparency and accountability of privately financed PPPs and will be introduced in a proportionate way so as not unnecessarily to increase the burden of administration and cost of PF2 projects. These measures include:
• the provision and maintenance of building and operating manuals, alongside regular service performance reports;
• maintenance of books of account recording costs, overheads, and other payments, including details of life-cycle funds on an open book basis;
• provision, on a semi-annual basis, of accrued and prospective IRRs of the company and its shareholders, and
• provision of ownership details including the price of any shares sold.
1.5.2 Alongside these measures the public sector will, in turn, improve transparency of PF2 projects as follows:
• by HM Treasury publishing, on its web site, a "projects approvals tracker," giving details of what stage the public sector, at any time, has reached in the scrutiny and approval of each PF2's business case; and
• by HM Treasury, through its new central equity investment unit, publishing an annual report with project and financial information on all PF2 project in which Government is a shareholder,
while procuring Authorities will be able to maintain better understanding of their projects by having an observer allowed to attend (but not participate in) project company board meetings.