FINANCING COSTS SPLIT BETWEEN PAYMENTS TO FUNDERS AND CAPITAL MOVEMENTS

Note 1: Interest and Dividends reflect the equity return and the interest cost that Modus pay to their third party funders. Draw down and repayment of principal relates to capital movements and reflects the benefit of funding being received at the start of the project but not being repaid until the end of it.

2. The figures shown in Table 2 are calculated, as explained in the Note, using a discount rate of 3.5%. As a result the total net present cost of the project appears to differ from the figure of £746 million in the C&AG's Report and in Table 1. For comparison, the table below analyses the component costs of the PFI deal using both discount rates.