Treasury bids get underway

by Carol Millett



Bidding for the financial package of the £120 million Treasury Main Building commenced last week with the release of the invitation to tender documents. The competition signals a new form of private finance initiative which will see separate bids for the service package and the financial package (see NAO page 3).

But funders complained this week that the bidding process promised to be long, expensive and strewn with red tape. One banker said: "I hope this is not a sign of things to come. The documents issued this week give so little information on the project that all we can do at this stage is say what we would charge assuming it is a standard deal."

Around 45 funders are expected to respond. The Treasury will then chose six bidders to compete for the funding package. Another banker said: "This process is going to run and run. I'd say it will add six months to the process."

Another funder warned: "Take contractors out of the funding process and there is no incentive for them to produce a financiable contract. Then when it does go out, either it will have to be amended or people will get into bad deals."