1.27 A robust VfM assessment is important for all public sector investment decisions. Any public body procuring an asset which will be privately financed has to compare the VfM of private finance against a public sector comparator (PSC). It has an incentive to show that private finance offers better value for money than the PSC as unless alternative capital funding is made available the project is unlikely to proceed. We previously concluded in our 2013 report Review of the VfM assessment process for PFI that these VfM assessments have features which favour and advantage PFI in comparison to a publicly financed approach. HM Treasury considers that these projects are rigorously tested to ensure that they are forecast to provide VfM. HM Treasury disagrees with the NAO's criticisms of the VfM assessment process and a full explanation of its position can be found in our 2013 report.30
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30 National Audit Office, Review of the VFM assessment process for PFI - Briefing for the House of Commons Treasury Select Committee, October 2013, paragraphs 10 to 14, available at: www.nao.org.uk/wp-content/uploads/2014/01/Review-of-VFM-assessment-process-for-PFI1.pdf