9. Any capital injection (including direct payments, land contributions, credit facilities and other similar arrangements) must be linked to full service commencement. If a strong VfM case can be made, the Executive will consider proposals linking injections to project milestones, but only when these milestones represent the full delivery of individual or bundles of facilities.
10. Where a Procuring Body commits itself to making injections, such contractual arrangements must not amount to a commitment on the Procuring Body that can be called upon prior to the certification of the relevant facilities and full service commencement therein, including the full operation of the payment mechanism in respect of the relevant facilities.
11. In circumstances where injections are included in a project, and where some or all of these injections are derived from land sale proceeds, it is of fundamental importance that Procuring Bodies are sufficiently protected against fluctuations in the value and availability of such receipts. For example, if the land sale proceeds are delayed, or if the expected values are not realised in full at no fault of the Procuring Body, the private sector funding proposal and mechanisms in place must be flexible enough to cover such circumstances.
12. Procuring Bodies are required to exclude any capital injections from the standard bid requirements included in the Invitation to Negotiate (ITN), and therefore, a compliant standard bid must be based on a wholly privately funded structure. It is important that project funders conduct their due diligence in respect of the total debt requirement of a project and commit to providing these funds in full if required. Procuring Bodies should also gauge their bonding / security / subcontract support requirements based on a totally privately financed solution. In order to demonstrate VfM, Procuring Bodies are required to evaluate standard bids exclusive and inclusive of contributions. Variations from standard bids that include a capital contribution must make it clear that private sector funds will be at risk if facilities linked to scheduled contributions are not completed by the forecast date of injection. If there is any rescheduling of private sector funding, Procuring Body funding should be capable of being withheld until the Procuring Body is satisfied that no elements of private funding are retired behind those of the Procuring Body and that the ratio or profile of private to public funding is not adversely affected.