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Serco Institute
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Refinancing & Secondary Markets

Particular concern has arisen in the UK around the refinancing of PFI projects once certain risks have vested, associated adjustments to the risk profile of the project, and profit-taking by the private stakeholders. Concerns have also arisen with the development of secondary markets in PFI equities. This section contains some of the reports and policy guidance dealing with these issues.

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Refinancing

Update on PFI Debt Refinancing and the PFI Equity Market (PDF)
House of Commons Public Accounts Committee, 2007
The Stationery Office
In light of the lower than expected gains for the public sector from refinancing, the committee makes recommendations for government departments to employ more flexible sharing arrangements as well as better tracking of the PFI equity market and greater transparency of information.
HC158 2006-7
UK

Update on PFI Debt Refinancing and the PFI Equity Market (PDF)
National Audit Office, 2006
The Stationery Office


UK

The Refinancing of the Norfolk and Norwich PFI Hospital (PDF)
Public Accounts Committee, 2006
The Stationery Office
This is the PAC report into the controversial re-structuring of the Norfolk and Norwich Hospital PFI deal. Private sector consortium Octagon's behaviour was infamously labelled "the unacceptable face of capitalism" and the report is highly critical of both Octagon and the Trust for their actions. There follows a series of recommendations to avoid a recurrence of the problems with which this early contract was beset.
HC 694
UK

The Refinancing of the Norfolk and Norwich Hospital: how the deal can be viewed in the light of the refinancing (PDF)
National Audit Office (NAO), 2005
The Stationery Office
This is the NAO report into the controversial re-structuring of the Norfolk and Norwich Hospital PFI deal. It examines and explains the source of financial disparity between private sector consortium Octagon and the Trust and makes recommendations to avoid a recurrence of such a deal in future.
HC 78
UK

Refinancing the Public Private Partnership for National Air Traffic Services (Report) (PDF)
National Audit Office (NAO), 2004
The Stationery Office

HC 157
UK

PFI Refinancing Update
House of Commons Public Accounts Committee, 2003
The Stationery Office
22nd Report of Session 2002-03
HC 203
UK

PFI Refinancing Update (Report)
National Audit Office (NAO), 2002
The Stationery Office

HC 1288
UK

The Refinancing of the Fazakerley PFI Prison Contract (Web Page)
House of Commons Public Accounts Committee, 2001
The Stationery Office
Recommendations include that departments should make better use of their negotiating position when PFI projects are refinanced and that there should also be better guidance available so that departments can better share in the benefits.
HC 372
UK

The Refinancing of the Fazakerley PFI Prison Contract (PDF)
National Audit Office (NAO), 2000
The Stationery Office
An examination of the Prison Service's decision to accept £1m from the financers of the PFI for HMP Altcourse.   This was offered to offset the increase in HMPS's termination liabilities due to project's debt re-financing which was to bring additional profit to the consortium shareholders.  
HC 584
UK

Secondary Markets

 List of Resources:

Liquidity and the Secondary PFI Market (PDF)
Rees, Robert, 2005
The PFI Journal, Issue 50, September 2005


UK

Last Updated: 18 March 2010