VFM. 4.1) Competitive Pricing 100% MI report from the Supplier showing pricing per Services (assignment) and variance from the agreed Framework Prices and rates.
VFM. The DoH loan is at a lower interest rate and for less years than the PFI scheme. Therefore this method of financing offers better value for money than the alternative of retaining within the main scheme. Affordability The table below sets out the impact of the knock-on effects of the Trust funding the further advance works through a 25 year prudential borrowing loan, compared with having the works completed as part of the PFI scheme, funded via the unitary payment (UP). Advanced enabling funded by 25 year prudential borrowing 9/10 10/11 11/12 12/13 13/14 Sum 14/15 to 2013/14 onwards Expenditure impact on SHA £000 £000 £000 £000 £000 £000 £000 I&E - additional transitional funding for earlier dep'n & dividend/interest on e 625 625 I&E - saving on accelerated depreciation funding -3,660 -3,040 -6,700 -3,035 -3,040 0 0 0 -6,075 0 Expenditure impact on NBT I&E - additional transitional funding for earlier dep'n & dividend/interest on e 625 625 Additional SHA transitional funding for the above item -625 -625 Reduced accelerated depreciation -3,660 -3,040 -6,700 Reduced accelerated depreciation funding 3,660 3,040 6,700 Reduced annual PFI unitary charge 0 -850 Total 0 -78 -78 -78 -78 -312 -850 Cash impact on NBT Additional capex 13,000 13,000 Additional prudential borrowing -13,000 -13,000 Interest charges on enabling -300 -300 Increased transitional cost funding 625 625 Reduced accelerated depreciation funding -3,660 -3,040 -6,700 Assumed loan repayment over 10 years -520 -520 -520 -520 -2,080 330 I&E impact 78 78 78 78 312 0 Total -3,335 -3,482 -442 -442 -442 -8,143 330 NBT management of cash impact Slip (and slioghtly reduce) capex 0 -3,040 1,004 1,621 -415 Take out unutilised cash from accelerated depreciation -1,004 -4,644 -5,648 Temporary reduction in current balances -3,335 3,335 0 Reduction in capital programme or capital receipts or higher surplus requirement -520 -520 -520 -520 -2,080 -3,335 -3,560 -520 -520 -208 -8,143 0 The key points are as follows: • The 25 year loan achieves a saving on accelerated depreciation charges, which reduces the funding required from the SHA. The net saving to the SHA after covering additional Trust capital charges is £6.075m. The saving to the SHA also assists the local health economy in the long term, as the SHA would require PCTs to repay the sums which it provides to NBT for accelerated depreciation in the years after 2013/14. • [REDACTED] • The 25 year loan option introduces new NBT prudential borrowing debt of £13m....
