- Re-profiling of the Unitary Charge, other than to provide for payment of the Authority's share of the Refinancing Gain (cf. §1.5).
- Increase in the scope of services, other than where this is done to provide for payment of the Authority's share of the Refinancing Gain - Introduction of benchmarking of "soft" services.
- An extension to the term of the Contract (cf. §1.6)
- Amendments to the payment mechanism to introduce improved performance régimes.
- Changes to compensation on termination provisions to bring them into line with SoPC (potentially relevant to earlier PFI deals).11
- A change in contract structure or an Authority consent which is required to enable the Contractor to switch from capital allowances to contract debtor accounting.
- Any other Contract amendment which requires the Authority's consent
Basic Amendments should be evaluated as part of the Refinancing proposal.
It may well be, for reasons of administrative convenience, minimisation of transaction cost and, most importantly, the incremental increase in Refinancing Gain made possible, that the Contractor proposes to implement the Additional Amendments at the same time as the Refinancing. But only if an Additional Amendment passes a separate and specific VfM assessment should it then be considered as an optional feature of a Refinancing. Moreover, the incremental Refinancing Gain resulting from an Additional Amendment should be largely if not completely for the benefit of the Authority- the appropriate split to be negotiated by the parties.
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11 An increase in termination liabilities as discussed in §1.3 will not be an Additional Amendment unless it is as a result of other changes to the Contract which come under this heading.