PFI funding lessons from the NAO
Government departments looking at new PFI deals should learn from the Treasury's building refurbishment project, the National Audit Office said today.
According to the financial watchdog, the Treasury saved the taxpayer Pounds 13m by using a funding competition to finance the refurbishment of its offices in Whitehall, a saving of 7% on the cost of the deal over the lifetime of the project.
Sir John Bourn, head of the NAO, said: ‘The Treasury has demonstrated that there is scope for innovation in the private finance initiative and was rewarded with a significant improvement in the value for money of this deal.’
This was the first time a competition had been used to find the finance for a PFI deal, separate from the rest of the deal.