1. Project Investment Methodology – Case Study Petra Wendelová Jim Wheeler Libor Cupal David Koudela 2. a 9.9.2008 Project financing provided by the European Commission 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 Financing Approvals process Project Investment Methodology Project Background

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

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

6. TreasuryDCMS Funding Allocation Other Department £130m

7. Financing DCMS WCC Applications from 32 Local Authorities LA

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

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

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

11. 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.

12. 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

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

14. PRG Approval DCMS 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 2006 Oct 2006 FINANCING GOVERNANCE LA / Uni Approval Commit to Affordability Gap PROJECT DEVELOPMENT