Nominal Capital Budget: the figure that is used at the start of project to identify project costs. Budget submissions include the nominal capital budget for infrastructure projects over the forecast period.
Government funding: the CAPEX identified as the government's capital contribution to the project.
External funding sources: there may be alternative funding sources, from other jurisdictions, from other organisations, or proceeds from land sales that contribute to the project funding.
Project Management: the running costs of a project. Sometime specific project management costs are sought to cover project management and external adviser costs for individual projects. When they are separately identified as recurrent costs do not include them in the table, but they may be wrapped up in the capital funding submission and, if so, should be included.
TEI: Total Estimated Investment the total government funding approved for the project (identified in a budget submission).
General Assumptions: in determining the project costs a number of financial assumptions are made in order to ensure that there is enough funding available for the project, either over the short term Traditional construction contracts, or the longer term PPP contracts.
Construction Escalation: financial analysis or quantity surveyor reports will include a percentage figure for escalation costs associated with the raw materials and labour over the 1-4 year construction period. In some cases escalation figures may be separated out into various material and labour costs, in this case put the overall escalation figure in the table.
No. of years of construction: The number of years over which construction is scheduled to take place.
For PPP projects only
Net Present Value of Contract: calculated by aggregating the discounted values of a series of future cash flows with the initial investment. This applies to PPP projects that have a long term payment stream. Once the contract is executed the initial nominal capital budget cost is replaced by a Net Present Value cost which reflects all the costs (capital and operating) of the project contract.
PSC: Public Sector Comparator is the hypothetical whole of life risk adjusted cost of government delivering the project output specifications.