There is a need to analyse cost inputs including those that are part of the financing package, which represent a significant proportion of the total costs of a typical PFP.
To enable Government to fully understand the private sector’s funding package, short listed bidders will be required to provide, as part of their response to the call for detailed proposals, the financial model used to support their bid.
Access to the financial model will enhance Government confidence in the project by:
• Confirming the level of risk transfers and costs
• Allowing full assessment of project affordability
• Providing the basis for comparative analyses
• Ensuring value for money is achieved
• Enabling Government to assess project changes, such as interest rate movements and cost changes, prior to financial close.