1. Project Investment Methodology – Case Study Petra Wendelová Jim Wheeler Libor Cupal David Koudela Project financingprovided by the European Commission 2. a 9.9.2008 Launch of a public / private sector partnership system in the Czech Republic, CZ05.02.04.02.0002, VZ60004428

2. Presentation program Project Background Financing Approvals process Project Investment Methodology

3. Presentation program Project Background Financing Approvals process Project Investment Methodology

4. Project Background • Joint Public and University Library with other elements • Groundbreaking scope • Multiple Procuring authorities • Significant commercial opportunity NPV PP

5. Presentation program Project Background Financing Approvals process Project Investment Methodology

6. Treasury DCMS Other Department Other Department Other Department Financing Funding Allocation £130m

7. WCC LA LA LA Financing DCMS Applications from 32 Local Authorities

8. Library and Archive Project Treasury DCMS Financing Funding Allocation £130m £35m £30m £15m £15m £30.0m £5m Multi -Service Centre Sports Centre Leisure Project Library Project Library Project

9. PFI Credits Grant Funding Financing Existing University Budget Expected Unitary Charge Existing Council Budget £?m Commercial Income Affordability Gap

10. Presentation program Project Background Financing Approvals process Project Investment Methodology

11. Identification of Approvals • 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. NPV PP

12. Planning Approvals Process Gateway approvals • No Direct Interest in Project • Full Scope of authority • Determine Process DCMS Treasury (PRG) Project owners • 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 County Council University Minority Stakeholders Applications • No Direct Interest in Project • Limited Scope of authority • Formal Applications timed to fit with timetable HEFCE Other approvals

13. Presentation program Project Background Financing Approvals process Project Investment Methodology

14. Project Investment Methodology PROJECT DEVELOPMENT Form project team Appoint advisors Risk mitigation Risk Workshop Technical Options Appraisal Procurement options (VFM) Risk Assessment Affordability Market Testing OBC Preparation Strategic Need Accounting Review GOVERNANCE LA / Uni Approval DCMS Approval PRG Approval DCMS Selection FINANCING Provisional Funding Allocation Commit to Affordability Gap Funding Confirmed Nov 2006 Aug 2005 Oct 2006