project investment methodology – case study
DESCRIPTION
Project Investment Methodology – Case Study. Petra Wendelová Jim W he e ler Libor Cupal David Koudela. Project financing provided by the European Commi ssion. 2. a 9 .9.2008. Launch of a public / private sector partner ship system in the Czech Republic , CZ05.02.04.02.0002, VZ60004428. - PowerPoint PPT PresentationTRANSCRIPT
Project Investment
Methodology – Case Study
Petra WendelováJim WheelerLibor CupalDavid Koudela
2. a 9.9.2008
Project financingprovided by the European Commission
Launch of a public / private sector partnership system in the Czech Republic, CZ05.02.04.02.0002, VZ60004428
Presentation program
Project Background
Financing
Approvals process
Project Investment Methodology
Presentation program
Financing
Approvals process
Project Investment Methodology
Project Background
Project Background
NPV PP
• Joint Public and University Library with other elements
• Groundbreaking scope
• Multiple Procuring authorities
• Significant commercial opportunity
Presentation program
Project Background
Approvals process
Project Investment Methodology
Financing
Financing
Treasury
DCMS
Funding Allocation
Other Department
Other Department
Other Department
£130m
Financing
DCMS
WCC
Applications from 32 Local Authorities
LA LA LA
Financing
Treasury DCMS
Funding Allocation £130m
Leisure Project
Library Project
Sports Centre
Library and Archive Project
Library Project
Multi -Service Centre
£35m £30m £15m £15m £30.0m £5m
Financing
Expected Unitary Charge
PFI Credits
Grant Funding
Existing University
Budget
Existing Council Budget
Affordability Gap
Commercial Income
£?m
Presentation program
Project Background
Financing
Project Investment Methodology
Approvals process
Identification of Approvals
NPV PP
Approvals required from• County Council – Responsible for provision of Public Libraries
• University – Responsible for provision of Library to University Students
• Minority Stakeholders – Inclusion of certain other services
• HEFCE – Grant funding only for specific needs
• DCMS – Responsible for allocation of PFI credit funding for libraries
• Treasury / PRG – Responsible for overseeing PFI consistency across sectors
• Other – Planning, Land issues etc.
Planning Approvals Process
HEFCE
County Council
University
Minority Stakeholders
DCMS
Treasury (PRG)
Other approvals
Project owners
Applications
Gateway approvals
• Direct Interest in Project
• Full Scope of authority
• Form Joint Project Team – represented by all stakeholders
• Delegated approvals to proceed within agreed parameters
• Confirm commitment at key stages
• No Direct Interest in Project
• Limited Scope of authority
• Formal Applications timed to fit with timetable
• No Direct Interest in Project
• Full Scope of authority
• Determine Process
Presentation program
Project Background
Financing
Approvals process
Project Investment Methodology
Project Investment Methodology
PRG ApprovalDCMS Selection
DCMS Approval
OBC Preparation
Technical Options
Appraisal
Procurement options (VFM)
Strategic Need
Form project team
Appoint advisors
Risk Workshop
Risk mitigation
Risk Assessment
Accounting Review
Affordability
Market Testing
Aug 2005
Provisional Funding Allocation
Funding Confirmed
Nov 2006Oct 2006
FINANCING
GOVERNANCELA / Uni Approval
Commit to Affordability Gap
PROJECT DEVELOPMENT