1/100th of 1%. A measure normally used in the statement of interest rates; 100 basis points equals 1%. | |
The final bids made in the competition between private sector bidders. | |
A form of interest bearing security issued by governments, companies and other institutions -usually a form of long-term financing. | |
A method of borrowing by which debt is raised from a wide variety of individual or institutional investors. Bonds usually carry a fixed coupon payable by the issuer (borrower) to the bondholder (investor) and have a predetermined repayment date. | |
A procurement for a contract in which the public sector customer, using Government finance, pays the contractor as the works progress. Such projects are fully paid for on completion. The public sector retains the risk that the assets will not be delivered on time or to budget. The provision of services, operation and maintenance of the resulting assets are dealt with in separate contracts. | |
The percentage rate applied to cash flows to enable comparisons to be made between payments made at different times. The rate quantifies the extent to which a sum of money is worth more to the Government today than the same amount in a year's time. | |
The value of a company or project after all liabilities have been allowed for. The equity is owned by the shareholders. | |
Spreadsheets designed to show the financial outcome of a particular set of estimated costs, revenues and fixed and capital charges for delivering a service over time. | |
A process whereby the financing for a project is obtained after a competition involving several potential funders rather than being provided by an incumbent funder retained by the project consortium appointed as preferred bidder. | |
A document giving detailed information about the services to be provided and the proposed PFI contract and inviting bidders to submit bids for the contract. | |
A formal communication to selected suppliers | |
The detailed standards of performance the authority requires a contractor to provide. | |
Expenditure to maintain the fabric of the building including the replacement of building components, plant and equipment. | |
The re-tendering on the market of services to test the value for money of that service. | |
A measure of the size of the floorspace which is calculated by adding the area taken up by the primary circulation (main routes by which people walk around the building, including emergency escape routes) to the Net Usable Area (the floor space available for locating desks, equipment and storage cabinets). | |
The net present value of the contract price represents the amount that would have to be invested at the start of the contract to fund the expected future cash payments which an authority will be required to make to the contractor. | |
Workspace where there is unobstructed access (i.e. no doors or full-height partitions) between the working area (usually desks) and the main circulation route through the building. | |
A bidder selected from the shortlist to carry out exclusive negotiations with the Department. | |
A policy introduced by the Government in 1992 to harness private sector management and expertise in the delivery of public services, while reducing the impact of public borrowing. | |
A benchmark against which value for money is assessed. It is typically a cost estimate based on the assumption that assets are acquired through conventional funding and that the procurer retains significant managerial responsibility and exposure to risk. | |
The process by which the terms of the funding which was put in place at the outset of a PFI contract, are later changed during the life of the contract, usually with the aim of creating refinancing benefits for the consortium company. Refinancing may be possible where the risk of a project has reduced due to, for example, the construction phase of a project being successfully completed. | |
The date by which the last instalment of principal is due so that the loan is repaid in full. | |
The value of an asset at the end of its useful economic life. | |
The debt that is ranked highest in terms of claims on project cashflows and therefore carries the lowest risk that it will not be repaid. | |
Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debt lenders receive payment only after senior debt is paid off in full. | |
The amount of compensation payable by the department to the consortium' banks in the event of premature contract termination. Depending on the circumstances of the termination, the compensation may be lender liabilities or the residual value of the contract. | |
Achieving the optimum combination of whole life cost and quality to meet customer requirements. |