What types of waste infrastructure is Prudential Borrowing suitable for?
All value-for-money assessments must necessarily consider alternative available contractual and funding structures which include appropriate risk management arrangements to ensure a value-for-money procurement outcome. For the reasons outlined in Question 3, private finance is viewed as the most appropriate method of funding for large residual waste infrastructure, involving process or combustion engineering technology. The position in relation to lower risk or lower value assets, such as land or Household Waste Recycling Centres may be different. The budgetary contingencies, procurement and project skills, resources and management needed to deploy public finance (e.g. Prudential Borrowings) successfully in support of these investments is more likely to be held within the core resources of major Authorities. There are a number of reports and guidance notes available from National Audit Office and HM Treasury which cover the use of private finance in public procurement. Links to some of
