In relation to the PricewaterhouseCoopers Financial Review of Scottish Prison Service Estates Review and the table of private prison prices…

Her Majesty's Prison Service provided the net present values (NPVs) as at the contract date for each prison in England and Wales. PricewaterhouseCoopers used the following methodology to calculate the NPV figures:NPVa = [((NPVh/Lk) x (1 + (GWIn-GWIs)/GWIn)) + ((NPVh/NLk) x (1 + (TPIn-TPIs)/TPIn))]/(C x D)Where:NPVa = The net present value per prisoner place yearNPVh = The net present value of the specific PPP Private Build Private Operate prison as provided by Her Majesty's Prison Service (HMPS)Lk = The labour element of the NPV, determined from the analysis of the labour/non-labour split per the HM Prison Kilmarnock PSC.GWIn = The General Wage Inflation index at the PSC base date as provided by the National Statistics OfficeGWIs = The General Wage Inflation index at the date of financial close for the specific PPP Private Build Private Operate prison as provided by the National Statistics OfficeNLk = The non-labour element of the NPV, determined from the analysis of the labour/non-labour split per the HM Prison Kilmarnock PSC.TPIn = The BCIS All-in TPI index at the PSC base date.TPIs = The BCIS All-in TPI index at the date of financial close for the specific PPP Private Build Private Operate prison.C = The number of years of the concession.D = The number of prisoner places per HMPS figures.