1.133 Typically, private finance is made available to Procuring Authorities based on a project finance model. Under project finance arrangements, senior debt (either in the form of bank lending or bonds) accounts for a high proportion (often around 90%) of the finance required to fund the capital costs required to procure, create or develop an asset.
1.134 The values used in the Spreadsheet for pricing private finance assumes a distribution of risks between the Procuring Authority and the PFI partner based on standard PFI contractual terms17. Deviations from these standard terms under SoPC should not be considered except in exceptional circumstances.
17 As described in Standard Form of Project Agreement (http://pfi.ogc.gov.uk/publications)