This guidance is intended to cover the general principles that should be followed by Authorities in the Transition Period and when setting up and implementing Contract performance monitoring arrangements for the operational period of a long term residual waste PFI/PPP contract. Some issues covered in the Guidance relate solely to projects which are eligible for WI Credits from Defra. These sections are clearly labelled.
The guidance assumes that the project is privately financed and does not address the issues raised by an Authority choosing to finance the project itself.
In general the approach adopted assumes that the project is bank financed, using a highly geared Special Purpose Vehicle (SPV) and that the assets transfer to the Authority on expiry of the Contract. However in certain sections there is discussion of the implications of the project being corporately financed and/or the assets not transferring to the Authority.