Depending on the specific provisions of the PPP project deed, the Responsible Agency will usually need to consent to:
• a proposed refinancing by the Project Company, which exceeds the quantum and tenure of debt as envisaged at financial close; and
• updated Base Case Financial Models associated with any refinancing.
The Responsible Agency must consult and seek advice from NSW Treasury on the proposed refinancing, including the updating of the Base Case Financial Model, as soon as the Responsible Agency is aware formally or informally of an upcoming refinancing, regardless of whether or not the Responsible Agency needs to provide formal consent to the refinancing.
A Responsible Agency is also required to notify NSW Treasury and confirm any non-consent refinancing.
NSW Treasury advice will draw from experience in connection with other PPP project refinancing processes, particularly in the case of refinancing that:
• results in a new or revised Base Case Financial Model
• gives rise to a refinancing gain share
• increases the amount of outstanding debt, relative to the current Base Case Financial Model
• defers the amortisation of debt relative to the current Base Case Financial Model
• incorporates an exotic swap; and
• increases, or is likely to increase or adversely change, the State's risks or liabilities, whether actual or contingent.