10.4  PSC and Shadow Bid Annual Service Payment Comparison

The diagram below shows a breakdown of the cost elements of the PSC and Shadow Bid ASP, estimated by the financial model, on an NPC basis. The Shadow Bid ASP can also show more detailed information broken down to the following elements:

•  Capital portion including: escalated construction costs, transaction fees and development costs, financing fees (costs of arranging debt and equity facilities), transfers to debt service reserve accounts, transfers to maintenance reserve accounts, income taxes and Goods and Services Tax (GST);

•  Rehabilitation portion only covering rehabilitation costs plus adjustment for inflation;

•  Operations portion which includes: inflation adjusted facilities management fees (health care and education sector), general and administrative costs and maintenance; and

•  Transferable risk portion.

An example of the ASP breakdown for both the PSC and the Shadow Bid, showing all relevant information is presented below in Figure 16.

Figure 16:  Simplified NPC Breakdown of PSC and Shadow Bid