5.5 As set out in Chapter 2, the price of public sector equity will be matched to a private sector equity rate of return in the project. Matching equity rates of return in this way provides transparency over the forecast and actual equity rates of return being achieved by private sector investors. However, there may be instances of different equity returns between private sector equity investors, for example in the event of one of the investors selling their shareholding in the project company. Therefore, in the interests of complete transparency in this area, private sector investors will be required to provide actual and forecast equity return information to the Treasury, which the Treasury will publish periodically. To ensure this information can be easily understood and compared across projects, the new standard contractual guidance1 sets out the precise way in which this information should be calculated and provided.
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