Appendix 1 Partnerships UK & CLG/HCA Template Tables for SoPC4 / HPP Housing PFI Derogations

1.  Please include details of the Local Authority, the Bidders, the Funders and their respective advisors, including a structure chart or organogram for each of the parties. Please include a short description of the transaction that this project agreement relates to (and where necessary, include any relevant background information such as the PFI and non-PFI funded development works and housing outputs, and whether these derogations have been approved by IUK as part of an earlier project).

2.  Key principles determining the structure of a project and requiring derogations, such as:

•  the treatment of land and associated non-PFI development activity,

•  the relationship of any works development provisions to the PFI contract

•  the approach to securing a benefit from residual value in non-HRA housing projects,

•  options on project expiry and termination,

•  financing structure, and

•  any other aspects which drive the need for derogations

should be set out comprehensively in a narrative paper explaining their rationale and accompanying the requested derogations

3.  Please include the date the tables are originally submitted to HCA. IUK / CLG / HCA will then respond with comments againsteach derogation. If any derogations and/or comments are subsequently revised, please ensure that such revisions are listed below the initial submission/comment together with the date that revision/comment was inserted to ensure that the whole history of the derogation is retained in the one document.  Any further versions of the tables should be cumulative and not cross refer to separate, previous versions.  Please do not remove any derogations from the tables once submitted even if they are subsequently withdrawn or accepted/approved by IUK / CLG / HCA.

4.  Please confirm details of any capital contributions (under or over 20% of the works capital value of a project), including the quantum (as well as a percentage of the total works capex), the timing and the drafting which evidences compliance with HMT's core principles (see 3.9 of SoPC4). Please also note any discussions with HMT/CLG/HCA which may have previously taken place during the procurement regarding approval of the capital contributions. If, at the time of submitting the derogations, the Local Authority has not yet obtained HMT/CLG/HCA approval, please provide us with a full description (as noted above showing compliance with paragraph 3.9 of SOPC4) as well as full justification for the capital contribution. This can be the subject of a separate paper if necessary.

5.  A marked-up PA and FDA (showing the same drafting deletions/insertions as set out in the derogations below) should also be submitted with this document and its two tables.

6.  HCA will review the derogations tables after submission by the Local Authority and make comments where necessary in the last column prior to submitting it to CLG and then IUK to ensure that only genuinely project specific derogations which are supported by CLG/HCA are submitted to IUK.

7.  Authorities and Bidders should pay regard to the HMT Instructions to the Market on Derogations (especially sections 14 to 20 of the Appendix): link follows : http://www.hm-treasury.gov.uk/d/pfi_sopcletter_210307.pdf