Variable

Description

Factors to consider

Gearing

This represents the share of the total financing requirement which is funded by debt

1.145

Sterling

swap rate 

Swap credit spread 

Bank margin

Consult Infrastructure UK if you are unsure which figures to use here.

See table A1.J

Percentage Capital Contribution

Percentage of Capex that is planned to be paid by the procuring authority as a capital contribution at completion of construction

1.150

See Technical Update 2010 at http://www.hm-treasury.gov.uk/ppp_standardised_contr acts.htm