Authorities considering a Refinancing should consult the VfM Refinancing Guidance, SE PPP VfM Guidance and where applicable the Refinancing Code. It is expected the process detailed in the FPU Refinancing Letter of March 2006 is adopted.
What is the purpose of this review?
This review should not be regarded as a pass / fail exercise. It is a tool to assist Authorities in conducting a Value for Money (VfM) analysis and internal sign off of a private sector refinancing proposal and to ensure that appropriate UK and Scottish guidance has been applied.
The review aims to gain transparency and provide an audit trail on decisions of key aspects of the proposed deal as well as help prevent any reallocation of risk, adverse changes to the project risk profile, and unintentional increases in the Authority's liability profile resulting from the refinancing. This review focuses solely on VfM in respect of the refinancing, not any additional elements of the contract that are subject to concurrent renegotiations. It is a requirement of this review that appropriate Authority representatives sign off the transaction in respect of its VfM.
How will this review be carried out?
As described the FPU Refinancing Letter of March 2006, projects are required to inform the Financial Partnership Unit (FPU) and the HMT Refinancing Task Force at the point when a refinancing deal is being proposed. A completed review document and evidence of Authority sign off must be submitted to the FPU before the refinancing can be sanctioned. Initial notification of an intended refinancing and all submissions should be made to:
Director
Financial Partnerships Unit
Scottish Executive
Victoria Quay
Edinburgh
EH6 6QQ
The FPU will discuss the review with the HMT Refinancing Taskforce and issue any points of clarification to the Authority no later than 2 weeks after the initial submission. Authorities should not instruct a refinancing until the Scottish Executive has confirmed that the review process has been completed successfully. The SE FPU may involve local Partnerships UK resources in the review separately from the HMT taskforce.