54. When the bids have been received they should be evaluated to assess whether different proposals are based on different degrees of transfer of a certain risk. If they are, this will need to be taken account of to compare bids on a valid basis. This process is highly relevant to the question of affordability. It is tempting simply to look at the expected payments to the private sector in each year and compare those with the expected budget for the service but thought should also be given to possible financial consequences of risks which are retained by the public sector.
55. If there is a significant chance of such risks materialising and the financial consequences would be unaffordable, then the proposal as a whole should be treated as unaffordable. However, common sense must be applied in this area. The public sector is always bound to retain some risks which could render the project unaffordable if they materialised: these might include events which are classed as force majeure, discriminatory legislation etc. A proposal should not be ruled out on affordability grounds, simply because the public sector "should not" take on the risk of high impact events like these, the probability of which is very low.