1.1  General

1.1.1  The Department for Communities and Local Government (DCLG) has developed a spreadsheet model (the "Model") to assist DCLG and Local Authorities with the assessment of projects that are intended to be procured using the Private Finance Initiative (PFI) to do one of the following:

(a)  Refurbish existing Housing Revenue Account properties including the provision of any new build properties (HRA PFI);

(b)  Procure additional social housing assets and services outside an authority's Housing Revenue Account (non-HRA PFI).

1.1.2  Both HRA PFI and Non-HRA PFI enable a Local Authority to take advantage of the private sector's ability to raise capital outside central and local government expenditure controls.

1.1.3  The Model is designed to help users identify whether using PFI is likely to deliver Value for Money (VfM). It also provides an indication of both the level of PFI credit required and the relative affordability of the project. It must be emphasised that these figures are indicators only and DCLG does not guarantee to meet the entire PFI credit requirement calculated in the Model. In addition, Authorities will need to carry out their own more detailed analyses to establish the actual affordability of their projects, taking account of likely procurement costs etc.

1.1.4  Any Authority wishing to apply for capital support for an HRA or non-HRA PFI scheme, in the form of a PFI credit, will need to provide a completed version of the Model with any submissions to DCLG for PFI credits. A copy will also need to be included with any Expression of Interest, Outline Business Case (OBC) (before the project can be considered for endorsement by the DCLG and the Project Review Group (PRG)) and Final Business Case (FBC).

1.1.5  The Model incorporates the Revenue Support Grant (RSG) arrangements for HRA and non-HRA projects that are applicable from 1 April 2005 using the prescribed annuity basis of calculation.