VFM analysis shall be performed for each proposed Privatization project in accordance with this Manual. NCP reserves the right to: modify the approach; request additional information; or require a more detailed analysis, as it deems necessary, for any specific project.
VFM seeks to capture the relationship between the cost of a project and the value which the project will provide.
The cost element usually represents the cost over the lifetime of the project to deliver the associated value, including the costs of managing the associated risks. Value comprises the quality and quantity of service or performance level over the same period.