2.6 The Input Values for the public sector Transaction Costs for the Conventional Procurement and the PFI Option are £1.958m and £1.453m respectively, corresponding to 3% and 2% of initial Capital Expenditure. It is assumed that these are fully payable in Spreadsheet Period 1.
2.7 The Input Values for annual Third Party Income is £{0.475} million. This represents 30% of total operational expenditure, as such, broadly reflects experience on other schools projects. The Input Value for annual Third Party Income for the PFI Option is £{0.575} million, 21% higher than under the Conventional Procurement Option.