1 / 14

Public-Private Partnerships: New VfM Guidance

Public-Private Partnerships: New VfM Guidance. Peter Conlong Finance & Central Services Department Analytical Services Division. Outline of Presentation. Need for new VfM guidance HMT guidance Scottish approach Questions?. Need For New Guidance. Revisions to HMT Green Book

shayla
Download Presentation

Public-Private Partnerships: New VfM Guidance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Public-Private Partnerships:New VfM Guidance Peter Conlong Finance & Central Services Department Analytical Services Division

  2. Outline of Presentation • Need for new VfM guidance • HMT guidance • Scottish approach • Questions?

  3. Need For New Guidance • Revisions to HMT Green Book • Reports by NAO & Audit Scotland • New Treasury VfM Assessment Guidance • To be applied in Scottish context

  4. New HMT Green Book • “Unbundling” of discount rate • Optimism bias • Tax adjustments • Emphasis on valuing benefits

  5. Historical Problems With VfM Assessments • Focus solely on “the numbers”? • Undertaken too late in process? • Public procurement option not credible?

  6. New Treasury VfM Guidance • PPP only one of a number of options • Only use where appropriate & VfM • Assess VfM early in process

  7. New Appraisal Process in Scotland • Stage 1: Programme Level Assessment • Stage 2: Project Level Assessment • Stage 3: Procurement Level Assessment

  8. Stage 1 - Programme Level

  9. Stage 2 - Project Level • Undertaken at OBC stage • Test specific project • Qualitative & quantitative assessments • Increased reliance on judgement

  10. HMT Quantitative Model • Simplified approach – reflects: • point at which analysis takes place • desire that authorities be able to run the model themselves • Use only at Stage 1 and Stage 2

  11. Stage 3 - Procurement Level • Ongoing process from OBC to close • Adequate competition? • Risk-sharing deliverable? • Confirm affordability • Plus…

  12. Final VfM Test • Unlike HMT, we are retaining final test of VfM against cost of public procurement • More detailed quantitative analysis • Consider alongside qualitative assessment • Provides clear audit trail

  13. Summary • New guidance required • 3-stage assessment process • Quantitative and qualitative • Retaining final VfM test

  14. Any Questions? • The guidance is currently being finalised - we would be grateful for your views

More Related