Financial Analysis - Actual Lifecycle Costs

2.33  Lifecycle costs for the Pilot PPP Schools Bundle are as per the costs within the Financial Model on a year-by-year basis. These figures are not the actual spend to date as the Project Company is not contractually obliged to provide this data. Analysis is therefore based on the forecasts.

2.34  Lifecycle costs for the Conventional Schools are as per the school accounts, which are inclusive of SWS and EWG monies that may have been granted to the school by the DoE. No Lifecycle costs are included for operational years 1-3 as this is typical of Lifecycle profiles where the likelihood of Lifecycle works being required is low. One Conventional School does have actual Lifecycle costs in years 2-3; these costs have been included as they are a fair representation of actual costs incurred. Where accounts are unavailable outside of years 1-3, the average spend has been utilised.

Figure 2.13 - Lifecycle NPV (€/m2 NPV)

2.35  The Lifecycle costs for the Pilot PPP Schools Bundle are almost double that of the Conventional Schools on an NPV basis (90% higher) (Figure 2.13). It is important to note that the level of works undertaken to the Pilot PPP Schools to date has been found to be significantly greater than that demonstrated across the Conventional Schools. In addition to this, there is no risk for the Pilot PPP Schools Bundle of early failure of assets resulting in an immediate budget requirement for replacement or major repair of assets as this risk is fully passed down to the Project Company. This risk is still present for the Conventional Schools.