5.4  Evaluation Criterion C4: Financing Structure

Evaluation Criterion C4

Financing Structure

The State will evaluate:

The appropriateness and robustness of the financing structure.

In evaluating this criterion, the key issues that will be considered include:

•  the appropriateness of the proposed financing structure, including:

-  the nature of each form of financing;

-  the quantum of each form of financing;

-  the terms of the financing; 

-  the level of gearing; and

-  the timing of capital components coming into the financing structure;

•  the competitiveness of the pricing and other terms of the financing structure, including draw stop provisions;

•  the extent to which the financing structure[, including to finance Pre-Agreed Modifications,] provides flexibility and addresses current issues in financial markets;  [Guidance note: Delete if Section 5.4.7 (Pre-Agreed Modifications (PAMs)) of Volume 1, Part A (General Information and Instructions to Respondents) is not included in the RFP for the Project.]

•  the financial robustness of the capital structure during the Development Phase and the Operating Phase; and

•  the appropriateness of the proposed payment arrangements between the State and Project Co, including the structure of the Service Payments.

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