dsr wrote:Provisional leases. Not actual ones. It's the same with the train franchises - the potential bidders aren't expected to buy or lease their trains before they bib, because no-one would ever bid on those terms. They are supposed to have firm plans in hand, though.
But if Grayling's senior civil servants, backed up by these £800,000 of consultants' reports, told him that they did have it in hand, I'm not sure it's realistic for him to turn the deal down. The Remain camp has been sounding off about listening to experts for the past three years - so let's not get to upset when someone actually does!
Yes, provisional contingent on the bid being successful.
Looks like the £800k was for the assessment of all three bids. It becomes a bit clearer, and more damning, when you read the NAO report.
https://www.nao.org.uk/wp-content/uploa ... rvices.pdf" onclick="window.open(this.href);return false;
It seems the DFT weighted it mainly (80%) on the cost and the other risks, etc only made up 20% of the points.
It seems that "The standard tests could not be completed on Seaborne given a lack of existing financial information due to it only being incorporated in April 2017. Deloitte therefore
did not make a formal assessment of Seaborne financial stability."
On top of that Mott MacDonald "flagged “significant execution risks” relating to the Seaborne bid."
It looks like the DFT was desperate, they expected more bids and only got three and pretty much decided they'd accept them all because they had no choice.
Financially it looks like there were enough targets to be met that the DFT wouldn't lose money if Seaborne didn't fulfill its obligations (apart from the £3m it had committed to Ramsgate). It would, of course, have lost time that could have been spent in finding an established operator (although that may not have been possible).
As I said earlier in this thread somewhere, if the government had been honest and said that there were concerns about Seaborne but there were measures in place if it didn't work out then this would have been much less of a story.
Instead they went with them because they were desperate and then, when questioned, doubled down on how confident they were and how all the necessary due diligence had been done (which it hadn't).