5.31 The scope for procuring authority gains can be affected by the financial structure. Some financial structures may provide the lowest initial whole life cost but do so at the expense of future refinancing gains that would otherwise have been shared with the procuring authority. A bond may be cheaper than bank debt but is likely to be more expensive to prepay as part of a refinancing when the project is operating successfully.
5.32 Refinancing gains are not certain and hence procuring authorities should be cautious when giving a value to a refinancing gain in any comparative evaluation between financial structures.