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.
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Railtrack risk for future PFI deals