We would like to congratulate NHS Grampian on achieving Financial Close (on 5 December 2016) with hub North Scotland Ltd on the project to build new health centres in Inverurie and Foresterhill (Aberdeen) using the hub/DBFM/PPP structure.
The total construction cost of around £22 million will be funded by institutional debt from Aviva, and subordinated debt from Currie & Brown Equitix, Galliford Try Investments, NHS Grampian, the Scottish Government and the Hub Charitable Foundation.
We advised NHS Grampian throughout the procurement up to and including financial close. Our responsibilities included assessing the financial submissions from the private sector partner, confirming levels of private sector returns, margins and fees, payment mechanism calibration, and support of commercial negotiations.
The Foresterhill Health Centre is being built within the site of Aberdeen General Hospital, adjacent to the Anchor Cancer Care Centre. It proximity will allow excellent liaison between Primary care and specialist services.
Inverurie Health Centre is home to the largest single General Practitioner practice in Scotland with around 21,000 registered patients, projected to rise to 30,000 by 2021. The new health centre will be a major improvement on the existing facility. At around 3,500 square metres, it will have space to incorporate community health services such as dental and community maternity provision. There will also be an energy centre as part of the development.
Contracts were exchanged yesterday between Aberdeen City Council and hub North Scotland for the construction of a new £45 million 1400 pupil school to service the south of the city. This is being delivered under the Scottish hub/DBFM/PPP commercial structure.
We have supported the council throughout the project’s development, first in 2013 by helping develop the Educational Benefit Statement which underpinned the decision to create a new school by closing and merging Torry Academy and Kincorth Academy, and more recently as the Council’s financial advisers.
In this latter role we advised the Council throughout the procurement, testing and analysing the financial model, checking it was consistent with the technical solution and the central government funding offer, and ensuring it was fully optimised and delivering value for money across a range of inflation scenarios.
This continues a long relationship with the Council. We advised on the procurement of the ‘3Rs’ schools PPP from 2004 onwards, and in 2011 we assessed options for educational provision in the north western part of the city.
Working with Castalia Strategic Advisers and with support from the Inter-American Development Bank we advised the Government of Uruguay and Corporación Nacional para el Desarrollo (CND) on the development of financial and technical aspects of the Uruguayan early years education PPP programme. This will create up to 60 kindergartens and family support centres to support the national poverty reduction and social inclusion policy.
Our responsibilities included project financial modelling, international best practice studies and the development of bespoke technical documentation which drew on our extensive experience of PPP transactions and implementation.
Working with LPS, we delivered a half day seminar and web broadcast to around seventy representatives from Latvian municipalities and local government bodies. The Webinar described the Scottish experience of PPP, its evolution to meet the particular social aspirations of the nation, and its relevance to other states of similar size and latitude.
West Dunbartonshire Council’s new 1000 pupil Our Lady and St Patrick’s High School reached financial close on Thursday 31 March 2016. The new school will be built and serviced by Hub West Scotland under a 25 year hub/DBFM/PPP contract.
We were West Dunbartonshire Council’s financial advisers on the project, advising on contract negotiations, financial model analysis and payment mechanism calibration.
We recently undertook a review of Dumfries and Galloway Council’s payment mechanism monitoring procedures for their Schools PPP programme.
Our work involved recalculating a sample of applicable deductions and a broader assessment of how their procedures worked in practice, noting any areas for improvement. We identified a number of potential efficiencies for the Council as a result of this review.
East Renfrewshire Council’s new 850 pupil £25 million Barrhead High School reached financial close in March 2016. The new school will be built and serviced by Hub West Scotland under a 25 year hub/DBFM/PPP contract.
We were East Renfrewshire Council’s financial advisers. Our role included analysis of the bidder’s financial model and funding structure, negotiation and calibration of the payment mechanism and liaison with the legal team to ensure a robust commercial solution.
Scottish Borders Council’s replacement for Kelso High School reached financial close on 19 February 2016. The new school for 850 pupils will be built and serviced by Hub South East Scotland under a 25 year hub/DBFM/PPP contract.
We supported the Council’s internal team throughout the process. Our services included liaison with central government to confirm the financial support package, testing and interrogation of the commercial financial model, and liaison with the technical and legal team to ensure that the model, payment mechanism and contract were consistent and reflected the position agreed between the parties during the contract negotiations.
Midlothian Council’s new 1200 pupil Newbattle High School reached financial close on Friday 12 February 2016. The new school will be built and serviced by Hub South East Scotland under a 25 year hub/DBFM/PPP contract.
We supported Midlothian Council’s internal team throughout the process. Services included assistance with the ‘Key Stage Review’ submissions to government, analysis and interrogation of the financial model and its underlying assumptions, and liaison with the technical to ensure that the payment mechanism and termination clauses were in line with current practice.
We are proud to have continued our long relationship with Moray Council and to have supported them on the procurement the new Elgin High School which was signed in February this year on the basis of the hub DBFM PPP structure. Previously, we supported the Council on the procurement of Elgin Academy and Keith Primary School.
The new school is a replacement for the original buildings, built in 1978. The school is a 6 year non-denominational comprehensive school with serving south Elgin and the adjoining rural areas. The new buildings will cater for 800 pupils and will have a separate sports block, an all-weather sports pitch and an athletics track. The school’s sports and performance facilities will be available for community use.