Local Authority Funding
Supplementary Waste Specific Value for Money Assessment Guidance
The Government is committed to securing, over the long term, the most cost-effective infrastructure for the public services. To achieve this, it seeks to ensure that investment uses the appropriate procurement option which can offer the best value for money, and that there is no inherent bias between procurement options.
Consequently, Government’s approach to PFI is based on an objective assessment of where it can offer value for money; where it can meet the Government’s requirements of efficiency, equity and accountability, and where the value for money it offers is not at the cost of the terms and conditions of staff.
Detailed information on how to approach appraising the value for money of investment proposals to be procured under the PFI is set out in HM Treasury’s Guidance:
- HM Treasury VFM Assessment Guidance – November 2006 (HM Treasury website)
This guidance document is however of a generic nature and encompasses guidance for the PFI sector as a whole. Defra decided that the earlier generic guidance document had to be adapted to the particular needs of the waste sector and to that end, commissioned Partnerships UK to assess the extent of applicability of the generic guidance to waste sector projects and to make recommendations as to what, if any, changes and additions might be required.
The supplementary guidance document and appendices below are the outcome of that commission.
It is, in effect, a waste-specific value for money assessment guidance to address the nuances and idiosyncrasies of waste projects. It is intended to supplement, rather than replace, HM Treasury’s generic guidance. It is meant to assist:
- Local authorities with determining whether PFI procurement is likely to deliver VfM for a specific waste project (second stage assessment); and
- Defra with determining whether PFI procurement is likely to deliver VfM for waste projects at the programme level (first stage assessment).
The conception of the waste specific guidance document assumes familiarity with HM Treasury’s generic guidance but provides clarification in the following areas:
- How to determine appropriate waste model inputs for the quantitative assessment
- How to interpret the model outputs for the quantitative assessment
- Which waste specific factors should be considered under the qualitative assessment
Additional guidance
The application note below interprets existing guidance in order to assist authorities in determining value for money when approving refinancing requests. This includes guidance on maximum levels of debt and increases in termination liabilities.
- Covering note: value for money in refinancing (PDF 120 KB)
- Application note: value for money in refinancing (PDF 200 KB)
Page last modified:
10 December 2007
Page published: 5 February 2003