A.45 Where appropriate for the project, Authorities should encourage bidders to identify variant financing solutions (such as capital markets) that offer robust deliverability and VfM.
A.46 Authorities entertaining financing structures outside of the traditional project finance model should consider how they will be evaluated and consult with their sponsoring department or Infrastructure UK at an early stage.
A.47 Authorities may be asked to consider proposals to change risk allocations to elicit more attractive financing terms, in particular in respect of margin and maturity. Any variant requiring risk allocation that differs from SoPC4 will require Infrastructure UK approval.
A.48 Authorities should be clear in their instructions to bidders that, while they wish to receive innovative proposals that will lower the cost of financing, a variant that requires derogations from SoPC4 will not necessarily be approved. Authorities should consult with Infrastructure UK before progressing with a bid that is affordable only with a derogation from SoPC4.