To ask the Scottish Executive what financial and technical criteria are used in determining the best value for money solutions for specific schemes needed to meet the requirements of the Urban Waste Water Treatment (Scotland) Regulations 1994.
The Scottish Water Authorities use a range of criteria in determining the best investment solutions for constructing schemes to serve their customers needs, including those schemes needed to meet the requirements of the 1994 Regulations.
These will include financial and technical criteria, but clearly other issues will also come into play, including planning and environmental considerations. At the top end of those projects necessary to meet Urban Waste Water Treatment Directive requirements, are PFI/PPP projects. These are subject to rigorous scrutiny and assessment by the water authorities, using extensive guidance prepared by HM Treasury Taskforce for this purpose. However, the main criterion here is that of a demonstrable saving in project costs over the Public Sector Comparator.
In relation to those schemes which are undertaken directly and funded by the water authorities, the approach generally will be to identify the solution which offers best value for money, using a number of criteria. Scoping exercises will be undertaken to identify possible sites; assessments made of the environmental advantages and disadvantages of the sites, including cost considerations. Some sites will then be chosen for further detailed study, resulting in the identification of a preferred site.
Experienced contractors will then be invited to submit tenders for the required facilities, and that which best satisfies the criteria will be selected. The water authorities have to be satisfied that the requisite statutory standards can be achieved; that the project can be completed in a manner compatible with wider environmental considerations; and that the facilities will offer the most effective long-term cost.