PFI deal praised for getting risk allocation right
3 April 2012
A Ministry of Defence (MoD) construction deal under the controversial private finance initiative has been praised by the National Audit Office (NAO).
It said the MoD arranged “an appropriate allocation of risk between itself and its private-sector contractor” in the project to redevelop the department’s main building in Whitehall.
It said the cost of the deal - £746.1 million - was similar to what would have been paid using conventional processes.
The contractor, the Modus consortium of engineering and...