28.5.4.1 The Authority's share should be taken as:
(a) a cash sum at the time of Refinancing; and/or
(b) by a reduced Unitary Charge.
28.5.4.2 In determining the appropriate form of Refinancing Gain sharing, the Authority should consider the value for money implications of taking it in a lump sum or over time (see further Guidance Note "Calculation of the Authority's share of a Refinancing Gain" on the HM Treasury web site).
28.5.4.3 Often, Refinancing Gains will be both immediate (e.g. by release of a reserve which can then be paid out as a Distribution) and long-term (e.g. by increasing the debt repayment period or reducing interest margins). In these cases, a mixture of cash lump sum and reduced Unitary Charge may be appropriate.
28.5.4.4 An Authority may elect (having discussed with its sponsoring Department or Private Finance Unit) to receive its share of a Refinancing Gain through increased scope of services, subject to suitable value for money tests and the application of any relevant procurement procedures.
28.5.4.5 Where the Authority's share of Refinancing Gains is to be paid by way of a reduced Unitary Charge, the reduction in Unitary Charge should not be at risk to Project performance even though the investors' share, which may well be projected to come through future dividend distributions, will be at risk.