nao annual private finance conference 7 th july 2008 john burns programme director, widp
DESCRIPTION
NAO Annual Private Finance Conference 7 th July 2008 John Burns Programme Director, WIDP. Contents. Aims and Action Plan Who Does What ? Transactor Support PFI Credit Support Guidance. 1. Aims and Action Plan. WIDP’s Aims (1). - PowerPoint PPT PresentationTRANSCRIPT
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v6.1 – October 2007
NAO AnnualNAO AnnualPrivate Finance ConferencePrivate Finance Conference
77thth July 2008 July 2008
John BurnsJohn BurnsProgramme Director, WIDP Programme Director, WIDP
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Contents
• Aims and Action Plan
• Who Does What ?
• Transactor Support
• PFI Credit Support
• Guidance
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1. Aims and Action Plan
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WIDP’s Aims (1)
Second Kelly Market Review advocated greater focus on developing the infrastructure for delivering EU Landfill Directive targets.
WIDP aims to support Local Authorities in England manage the procurement of the new infrastructure required to reduce the amount of biodegradable municipal waste landfilled (relative to that produced in 1995)
• to 75% by 2010
• to 50% by 2013
• to 35% by 2020
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WIDP’s Aims (2)
To build on several existing streams of work within the Waste Implementation Programme.
To bring together the resources and roles of Defra, Partnerships UK and 4ps in support of Authorities undertaking waste projects
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WIDP Action Plan – Success Factors (1)
• Stable policy environment well communicated
• Effective communications
• Engagement of Energy Supply Industry and Government Energy Policy
• Support on planning process
• Programme affordability
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WIDP Action Plan – Success Factors (2)
• Programme Direction and Monitoring
• Incentives for Authorities to cooperate and host facilities
• Market Development including stimulating capacity
• Pipeline Management
• Support for Authorities
• Programme Information
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Pipeline Management Functions
• Communicating rules of PFI award rounds to LAs
• Managing allocation of PFI funds to projects
• Supporting development of all Projects (PFI and non-PFI projects)
• Communications with the bidding, funding and advisory communities
• Monitoring progress of projects in development and procurement
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Growing Pipeline – PFI and PPP deals
06/07 07/08 09/10 10/11 11/12 12/1308/09
10
5
0
15
Closes pa
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2. Who Does What?
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Waste Strategy Programme (WIP) Board
WIDP Exec Board
See Next Page
WIP Structure and Governance
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WIDP – Structure
Transactor Coordinatio
n (Ben Prynn)
Data Collection & Analysis
(Keith Rogers)
Programme Support
Office (Alan
Williams)
Project Development
& Scrutiny (John
Enright)
WIDP Exec Board John Burns Defra Michael Gerrard PUK Chris
Wilson 4ps
Policy and Market
Coordination (Melville Haggard) Guidance and
Contract Coordination
(Amar Qureshi)
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Transactor Coordination Team
National Transactor Coordinator
Ben Prynn
South
Jeremy Seldon
North
Duncan Powell
Midlands
David Revell
London
John Enright
Projects
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3. WIDP Transactors
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Transactor Support for Authorities
• Point of contact for all communications with Defra
• Available for non-PFI projects as well as PFI projects
• Strengthens authority client team – does not substitute for the use of advisers
• Complements existing skills development and procurement QA processes
• Subject to an MoU
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When Can Transactors Help?
Business Case
Procurement Stage
FBC developmentand scrutiny
Post procurementreview
Planning and Operations
Project Development
OJEU Notice
Final Tenders
Pre-qualification
We will work with authorities at any stage from project development to commissioning and throughout the operational phase.
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Transactor Skills
• Procurement
• Contracts
• Governance/QA
• Guidance/best practice
• Waste sector knowledge
• Local government finance
• Project finance
• Planning
• Negotiations
• Project Management
• Liaison with Central Government
• Contacts with industry
• Defra Policy
• Multi Authority projects
• Member briefing
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PFI Funding History
• 23 projects already allocated PFI funding:• 15 in implementation• 8 in procurement
• Allocation based on a “first come first served” principle
• Awards varied from £13m to £100m with an average of £46m - not linked directly to capex
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PFI Funding Now
• PFI credit criteria (May 2006) still apply.
• CSR 07 allocated
• 2008/9 £600m
• 2009/10 £700m
• 20010/11 £700m
• Credits allocations to projects determined by relevant capex (minimum 50%)
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PFI Credit Criteria
Criteria published in May 2006 emphasise:
• Inter-Authority Partnership working
• Diversion from landfill and residual waste treatment
• Municipal Waste Management Strategies
• Site availability and planning status
Plus
• Recycling levels
• Carbon implications of treatment
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PFI Credits – Award Rounds
• Two step application process• Expression of Interest
• Outline Business Case
• Standardised EoI, OBC and FBC documentation
• Six monthly award rounds
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PFI Credits – Award Rounds (2)
Winter 08/09Oct 08March 084
Summer 08April 08n/a3
Winter 07/08Oct 07n/a2
Summer 07n/an/a1
OBC ApprovalOBC Submission
EoI Submission
Round
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Award Round 1 – 2 Projects in Procurement
Merseyside Waste Disposal Authority
• approved April PRG
• OJEU’d on 11 July 2007
North Yorkshire and City of York
• approved July PRG
• acquired sites
• OJEU’d 1 September 2007
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PFI Credits – Award Round 2
• Covers projects which submitted Expressions of Interest before March 2007
• Projects Involved• Bradford
• Suffolk
• South Tyne and Waste Partnership
• Leeds
• Barnsley, Doncaster and Rotherham
• OBCs approved Feb – June 2008
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Award Round 3 - 9 EoIs Received
• Essex CC
• Gloucestershire CC
• Leicestershire CC
• Lincolnshire CC
• MK/Northamptonshire CC
• North London Waste Authority
• Norfolk CC
• Plymouth/Torbay/Devon
• Staffordshire CC
Due to PRG by Sept 2008
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Award Round 4
• Authorities submitted EoIs by 31 March 2008
• 12 EoIs received
• 10 progressing
• WIDP Transactors allocated
Due to PRG by Feb 2009
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GuidancePublished or Under Consultation
Anticipated July 2008
December 2007 – 22 February 2008
Under consultationPayment Mechanism
Anticipated July 2008
December 2007 – 22 February 2008
Under consultationOutput Specification
Anticipated July 2008
December 2007 – 1 February 2008
Under consultationPrudential Borrowing – Frequently Asked Questions
August 2007-PublishedPlanning Systems Guidance and Planning Health Framework
Launch DateConsultation DateStatusGuidance
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GuidanceTo be published shortly
Launch DateConsultation DateStatusGuidance
-
June 2008Anticipated February 2008 – March 2008
Anticipated to be published for consultation shortly
Project Governance
AnticipatedJune2008
- Anticipated to be published shortly
Options Appraisal
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GuidanceUnder development
Launch DateConsultation DateStatusGuidance
Autumn/winter 2008
-Under developmentOpen Market EfW Contracts
Autumn 2008Summer 2008Under developmentContract
Autumn 2008-Under development Joint Working
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Issues looking forward – 2008/9
• Carbon
• Renewable Energy/CHP
• Consortia working
• WDA partnership working
• SRF composition, use and fuel mixing
• Waste wood
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Questions welcome!