Update on PFI Debt Refinancing and the PFI Equity Market
The Stationery Office, Apr 21, 2006 - Business & Economics - 62 pages
Findings from this NAO report include that the government has secured gains of £137 million from Private Finance Initiative (PFI) debt refinancings under new arrangements introduced by the Treasury in 2002 (including £102 million from four large refinancings (one of the London Underground contracts and three hospital projects: Norfolk and Norwich, Darent Valley and Bromley). The NAO found that the new sharing arrangements through a voluntary Code appear to be generally working well but there have been exceptions, for example in three road projects the public sector missed out on at least £1.7 million because gains were not shared in accordance with the voluntary code. The report also describes the emergence of the PFI secondary market which is enabling equity investors in PFI projects to sell their shares on to new investors.
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This report has been prepared under The Government has secured
The agreed sharing arrangements have been
Application Note asset authorities Balfour Beatty Barclays Private Equity bond finance calculated capital value Code refinancings consortium contract extensions contract period contractor costs Darent Valley Hospital DBFO Department for Transport departments early PFI deals expected Fazakerley following a refinancing following the refinancing Government Highways Agency improve increased termination liabilities Innisfree interest rate internal rate investment lump sum million NAO report National Audit Office negotiations Norfolk and Norwich Norwich Hospital OGC's PFI contracts PFI equity market PFI market PFI project companies PFI refinancing update private sector project teams Projects signed public sector rate of return recommendation refinancing activity refinancing benefits refinancing issues refinancing proposals Refinancing Taskforce returns to investors risk Scenario shareholders shares in PFI sharing of refinancing sharing refinancing gains standardisation of PFI transactions Treasury agrees Treasury guidance unitary charge value for money voluntary code voluntary sharing arrangements