2.2  Purpose of the PSC

The purpose of the PSC is to provide governments with a quantitative measure of the value for money it can expect from accepting a private sector Proposal to deliver the output specification compared to public sector delivery.

Given that the PSC is a valuable tool for government in determining value for money, it is important that it is prepared carefully and comprehensively.

The PSC therefore provides government with an approximate measure of the range of outcomes that Government is likely to face in delivering a project under traditional methods. To maintain its usefulness as a tool, the PSC will be:

•  accompanied by qualitative considerations in determining the potential value for money of a PPP arrangement;

•  subject to sensitivity testing and scenario analysis to determine the robustness of its underlying assumptions, and their impact on the PSC's results; and

•  sufficiently flexible to allow new information to be incorporated as it comes to light enhancing the integrity of the PSC as a benchmark while maintaining the probity of the project development and tender assessment processes.