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 Independent validation for PPP, PFI and SPV proposalsWe provide independent assessment for PFI schemes. We can assess risk over the full business cycle of capital, operational and disposal expendituresGovernment Departments will agree to Public Private Partnerships if proposals for them can demonstrate both value for money and a sufficient transfer of risk to the private sector. This should be confirmed independently. We can assess and then prepare the evidence on behalf of PPP proposers, or we can validate on behalf of Government Departments that VFM and Risk Transfer have been achieved.Our methods assist the client to define and understand the risk allocation mechanisms between the contracting parties, and to track the changes in risk transfer and risk sharing as negotiations proceed. The methods provide evidence for the application of the H M Treasury Guidelines and the use of Optimism Bias corrections. They reveal the appropriate contigency. Our methods are particularly appropriate because they allow us to assess the impact of risk not only to the development of the scheme but also to its operation, its through life costs, its irrecoverable opportunities and its eventual disposal. We have developed elastic cash flow methods that allow us to demonstrate the range of possible investment returns that will accrue in a way that gives clients the confidence they need to commit to financing because they can see the combined, overall effect of risks to capital expenditure, to operations, to revenues and all other areas that might affect the business case. Our analysts take into account risks inherent in the applicable legislation, the contracts, the tax regime and other governing documents, as well as those in the works and their use. We can evaluate risk not only in terms of time and money but also in terms of utility where that is more appropriate. The elastic cash methods also assess the financial viability of any innovation proposals which the private sector is considering to help deliver VFM.
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