Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Not Addressed
Significant proportion of major government projects still lack an evaluation plan
Conclusion
The Treasury told us that the proportion of major projects that have been evaluated has improved since the NAO’s evaluation report. After our evidence session, the Treasury wrote to us and stated that 68% of infrastructure and construction of major projects have a high-quality evaluation plan. Across all major projects, 63% have at least some form of evaluation plan – but only 34% were deemed high quality. This leaves 37% of all major projects with no evaluation plan.24 The Treasury told us that to address some of these issues, the Evaluation Task Force published an action plan to keep improving evaluation across the major projects portfolio.25
Government Response Summary
The government states the recommendation is implemented, but its response focuses on the Green Book appraisal process for selecting financing models, not directly addressing the committee's concern about the proportion of major projects lacking high-quality evaluation plans.
Government Response
Not Addressed
HM Government
Not Addressed
2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 The government’s 10 Year Infrastructure Strategy sets out several of the main basic models available to deploy private finance into projects, many of which have been and continue to be highly successful in delivering infrastructure investment. 2.3 In general, while some model archetypes might be suitable for different markets or different asset types, the selection of a financing model will be highly dependent on the specifics of a given project (e.g. the risk profile, maturity of technology, and so on). The Treasury's preferred model for any type of infrastructure project is the one that offers the best value for money, and it appraises proposals on a case-by-case basis using the Green Book. 2.4 Contracting authorities should design their model with suitable provisions and appropriate risk transfer based on the specific project at hand ensuring value for money. This means that the appropriate model will often be a bespoke version of an existing basic model. NISTA provides advice and guidance to contracting authorities, and the Treasury teams and NISTA work together to implement the 10 Year Infrastructure Strategy including through considering how private finance can deliver the government’s infrastructure priorities. 2.5 The Treasury evaluates the costs and benefits of alternative options – including financing models – as part of the Business Case process to identify the preferred model for each project and to ensure value for money is achieved for each infrastructure investment.