4. The checklist is structured around the three high level criteria identified by HM Treasury as being key to selecting projects with PFI potential; that is, those:
a) where PFI is viable, i.e. where the investment objectives and desired outcomes can be translated into outputs that can be contracted for,
b) where PFI is desirable, i.e. where the benefits of PFI in better risk management, the integration of life cycle costs with design & construction, the increased probability of delivery on time & to budget and opportunities for innovation do not outweigh the additional cost of transfer of risk to the private sector,
c) where PFI is achievable, i.e. where there is a capability and desire on both the public and private sector sides to contract for a service, where the transaction costs do not outweigh the PFI benefits and there is a competitive market interest and capacity.
5. It should be noted that these three criteria are not mutually exclusive, but are defined in a way that minimises overlap. The criteria for each of the above categories are given in Annexes A, B and C respectively