The Role of the Refinancing Taskforce

In Scotland, the Financial Partnerships Unit has agreed that the Refinancing Taskforce should support public sector bodies whose PFI contracts may be refinanced. Taskforce representatives will inform Procuring Bodies of the extent to which their input and related cost is covered by HMT. We expect that authorities will utilise Taskforce support at three points during Refinancing:

  First, when the private sector partner makes a formal proposal for a refinancing, the Procuring Body is likely to need help in reviewing the proposal, providing an initial response and in appointing suitable advisers.  It is important to note that Procuring Bodies need to appoint suitably qualified financial (including taxation) and legal advisers because a Refinancing is a highly technical and complex transaction.

  Second, once agreement has been reached to proceed with the Refinancing, there will be an intensive phase of analysis and negotiation between the Procuring Body, the private sector partner and financiers, during which the Procuring Body may require pro-active support and advice from the centre, particularly in respect of transactions under the Code.

  Third, shortly before implementation of the refinancing, as part of the Procuring Bodies sign off and VfM justification, a specific self assessment Key Stage Review ("KSR") will be completed by the Procuring Body and will be submitted to the Scottish Executive. This submission will highlight the proposed deal and the application of the Refinancing proceeds, it will confirm that the Procuring Body has signed off on the Code and its compliance and it will confirm that Refinancing and other appropriate VFM guidance has been applied. Evidence of Procuring Authority sign off, with support from advisers, of all these areas must be demonstrated. Review of the KSR (facilitated through the FPU) will be undertaken locally by Partnerships UK with input from the Taskforce as required. This is an important exercise to confirm that the project continues to represent VfM and to underpin the continued central funding support.

The Taskforce continues to provide direction and a central guidance role for UK Refinancings and will continue to give specialist support to the Financial Partnerships Unit on PPP Refinancing matters as required.