PART ONE The Government has secured £137 million from PFI debt refinancing but there has been little recent activity
1.1 Most early PFI deals had no provision for sharing refinancing gains as the Government considered the financing risk lay with the private sector. Following reports by the NAO8 and PAC9 which highlighted the potential for refinancing gains in early PFI deals, the OGC launched, in 2002, with the support of the Confederation of British Industry (CBI), the Code which expects the private sector to voluntarily share 30 per cent of refinancing gains with the public sector. PFI deals signed after July 2002 incorporate a 50:50 sharing arrangement.
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8 Refinancing of the Fazakerley PFI prison contract HC 584 1999-2000.
9 Thirteenth Report from the Committee of Public Accounts, The Refinancing of the Fazakerley PFI Prison Contract (372 (HC 995-i 1999-2000).
- The Government has secured the right to £137 million from PFI debt refinancing
- The gains received by the public sector from the voluntary sharing arrangements under the Code have so far been less than expected
- The agreed sharing arrangements have been applied in most debt refinancings but there have been exceptions
- Refinancings have increased investors' returns by varying amounts