5.4  Lender support for large, complex or novel bids

If the project is either novel, large or complex it is likely that financial structuring will play a more important part in evaluation. Innovation may be possible, allied to which the Authority may want additional assurance that finance will be available for a bidder's proposals. In this case, Authorities should consider specifying that bids should be accompanied by support from one or more lenders. To encourage lenders to undertake the necessary due diligence and demonstrate the level of additional commitment required for such projects under CDP, it may be necessary to offer lender(s) a "right-to-match" a percentage of the total funding, at the winning terms of a PBDFC. This option should be commensurate with the size of the lenders commitment and the extent of the work undertaken. We would not envisage a "right to match" extending beyond 50 percent of the loan size. Authorities should be guided by their departmental PFUs and advisors. The CDP requires that all such arrangements be fully described in the early bid documentation.