2.10  The use of precedent information

After the calculation of a Discount Rate with CAPM it will be useful to apply a "sanity" check to the rate.  The Relevant PPP Authority should have access to the rates applied on other projects and this should be used to test the reasonableness of the results.  However, it should be noted that each project should be expected to have a different level of Systematic Risk depending on its scope, nature and the risk transfer proposals reflected in the project documentation.