4.3  Affordability Calculation Sheet

4.3.1  It should be noted that although a PFI credit value is calculated based on the contractor costs, the figure that ultimately feeds through to calculate the level of the Revenue Support Grant (RSG) is entered manually on worksheet 'I (Gen)'. This reflects the comments in section 1.1.3 as the DCLG does not guarantee to meet the entire PFI credit requirement calculated.

4.3.2  The affordability position to the Authority compares the total revenue sources available to the Authority each year (including the RSG calculated) to all of the costs of the programme, including the Unitary Charge to the PFI Contractor and other costs to the Authority. For the project to be affordable as defined on the Output Summary (see section 5.6) the Model will need to show a positive cash balance to the Authority at the end of the contract.