The Governments flagship PPP programme is to come under critical examination.
The National Audit Office has said it will undertake a review of all PPP contracts signed by the Government – estimated by the Treasury to be worth £80bn – over the next year.
The review includes investigating the sale of the £2bn STEPS portfolio to Mapeley, as well as the Treasury and MoD private finance deals, worth £500m and £1.6bn respectively.
The reports will focus on whether PPP is a fair bidding process that offers value for money.
Tom Brake MP, the Liberal Democrats spokesman on PPP, said: “The bidding mechanism for PPP relies too much on preferred bidders, and allows them to extract either low management standards or higher costs from the Government.”
Robin Priest, chief executive of Mapeley, said: “Were not worried about the reports, or the opposition to PPP. PPP gets into trouble with huge public infrastructure projects like the Tube. Property is relatively straightforward and, so far, successful. All the lessons from Prime have been learned.”
EGi News 31/08/01
