Tag Archives: Payment Mechanism

Key Performance Indicator, KPI, School and Education PPP, School PPP

New West Calder High School Reaches Financial Close

West Lothian Council’s procurement of the new West Calder High School from hub South East reached Financial Close today, 14 December 2016.

This is the eleventh such Financial Close using the Scottish hub/DBFM PPP financing model that Caledonian Economics has advised on this year.

The new high school building has been designed to meet modern access requirements and support inclusion of pupils with additional learning needs in line with the ‘presumption of mainstream’.

The new location  will enable greater community access to the very high standard of facilities, particularly physical education facilities for community use outwith core school hours.

 

Healthcare and Hospital PPP, Key Performance Indicator, KPI, Smart Cities

NHS Grampian – Foresterhill and Inverurie Health Centres – Financial Close

We would like to congratulate NHS Grampian on achieving Financial Close (on 5 December 2016) with hub North Scotland Ltd on the project to build new health centres in Inverurie and Foresterhill (Aberdeen) using the hub/DBFM/PPP structure.

The total construction cost of around £22 million will be funded by institutional debt from Aviva, and subordinated debt from Currie & Brown Equitix, Galliford Try Investments, NHS Grampian, the Scottish Government and the Hub Charitable Foundation. 

We advised NHS Grampian throughout the procurement up to and including financial close.  Our responsibilities included assessing the financial submissions from the private sector partner, confirming levels of private sector returns, margins and fees, payment mechanism calibration, and support of commercial negotiations.

The Foresterhill Health Centre is being built within the site of Aberdeen General Hospital, adjacent to the Anchor Cancer Care Centre.  It proximity will allow excellent liaison between Primary care and specialist services.

Inverurie Health Centre is home to the largest single General Practitioner practice in Scotland with around 21,000 registered patients, projected to rise to 30,000 by 2021.  The new health centre will be a major improvement on the existing facility.  At around 3,500 square metres, it will have space to incorporate community health services such as dental and community maternity provision. There will also be an energy centre as part of the development.

Healthcare and Hospital PPP, Key Performance Indicator, KPI, Publications, School and Education PPP, School PPP, Training and Development

Education PPP – IDB, CAF and World Bank in Uruguay

Education PPP training Uruguay

Education PPP seminar

This October with Maria Jimena Cordoba from Castalia we provided a Education PPP training workshop for Uruguayan government agencies including Corporación Nacional de Desarollo (CND), Administración Nacional de Educación Pública (ANEP) and the Institute for Children and Adolescents (INAU) in Montevideo. The workshop covered international experience with Education PPP and management of  PPP contracts.

We also delivered a presentation on best practice in Education PPPs at a breakfast briefing event in Montevideo organised by the Inter-American Development Bank, the Development Bank of Latin America (CAF)  and the World Bank to promote the forthcoming Uruguay Kindergarten PPP project. 

Approximately 100 delegates from across  the Uruguayan PPP industry heard our presentation which described the Scottish experience of Education PPP over the last twenty years.

School and Education PPP

Aberdeen City – New South of the River Secondary School

Contracts were exchanged yesterday between Aberdeen City Council and hub North Scotland for the construction of a  new £45 million 1400 pupil school to service the south of the city.  This is being delivered under the Scottish hub/DBFM/PPP commercial structure.

We have supported the council throughout the project’s development, first in 2013 by helping develop the Educational Benefit Statement which underpinned the decision to create a new school by closing and merging Torry Academy and Kincorth Academy, and more recently as the Council’s financial advisers.

In this latter role we advised the Council throughout the procurement, testing and analysing the financial model, checking it was consistent with the technical solution and the central government funding offer, and ensuring it was fully optimised and delivering value for money across a range of inflation scenarios.

This continues a long relationship with the Council. We advised on the procurement of the ‘3Rs’ schools PPP from 2004 onwards, and in 2011 we assessed options for educational provision in the north western part of the city.

 

 

Economic Development, Healthcare and Hospital PPP, School and Education PPP, Training and Development

Government of the Republic of Uruguay

Working with Castalia Strategic Advisers and with support from the Inter-American Development Bank we advised the Government of Uruguay and Corporación Nacional para el Desarrollo (CND) on the development of financial and technical aspects of the Uruguayan early years education PPP programme.  This will create up to 60 kindergartens and family support centres to support the national poverty reduction and social inclusion policy.

Our responsibilities included project  financial modelling, international best practice studies and the development of bespoke technical documentation which drew on our extensive experience of PPP transactions and implementation.

Key Performance Indicator, KPI, School and Education PPP, School PPP, Uncategorized

Our Lady and St Patrick’s School – Financial Close

West Dunbartonshire Council’s new 1000 pupil Our Lady and St Patrick’s High School reached financial close on Thursday 31 March 2016.  The new school will be built and serviced by Hub West Scotland under a 25 year hub/DBFM/PPP contract.

We were West Dunbartonshire Council’s financial advisers on the project, advising on contract negotiations, financial model analysis and payment mechanism calibration.

Education Strategy, Key Performance Indicator, KPI, Organisation Development and Training, Publications, School and Education PPP, School PPP

Dumfries and Galloway Council – payment mechanism

We recently undertook a review of Dumfries and Galloway Council’s payment mechanism monitoring procedures for their Schools PPP programme.

Our work involved recalculating a sample of applicable deductions and a broader assessment of how their procedures worked in practice, noting any areas for improvement. We identified a number of potential efficiencies for the Council as a result of this review.

Key Performance Indicator, KPI, School and Education PPP, School PPP

New Barrhead High School reaches Financial Close

East Renfrewshire Council’s new 850 pupil £25 million Barrhead High School reached financial close in March 2016.  The new school will be built and serviced by Hub West Scotland under a 25 year hub/DBFM/PPP contract.

We were East Renfrewshire Council’s financial advisers. Our role included analysis of the bidder’s financial model and funding structure, negotiation and calibration of the payment mechanism and liaison with the legal team to ensure a robust commercial solution.

Key Performance Indicator, KPI, School and Education PPP, School PPP

Scottish Borders Council – Kelso High School

Scottish Borders Council’s replacement for Kelso High School reached financial close on 19 February 2016.  The new school for 850 pupils will be built and serviced by Hub South East Scotland under a 25 year hub/DBFM/PPP contract.

We supported the Council’s internal team throughout the process.   Our services included liaison with central government to confirm the financial support package, testing and interrogation of the commercial financial model, and liaison with the technical and legal team to ensure that the model, payment mechanism and contract were consistent and reflected the position agreed between the parties during the contract negotiations.

 

Key Performance Indicator, KPI, Organisation Development and Training, School and Education PPP, School PPP

Newbattle High School reaches Financial Close

Midlothian Council’s new 1200 pupil Newbattle High School reached financial close on Friday 12 February 2016.  The new school will be built and serviced by Hub South East Scotland under a 25 year hub/DBFM/PPP contract.

We supported Midlothian Council’s internal team throughout the process.  Services included assistance with the ‘Key Stage Review’ submissions to government, analysis and interrogation of the financial model and its underlying assumptions, and liaison with the technical to ensure that the payment mechanism and termination clauses were in line with current practice.