v6.1 – October 2007

NAO AnnualNAO AnnualPrivate Finance ConferencePrivate Finance Conference

77thth July 2008 July 2008

John BurnsJohn BurnsProgramme Director, WIDP Programme Director, WIDP

Contents

• Aims and Action Plan

• Who Does What ?

• Transactor Support

• PFI Credit Support

• Guidance

1. Aims and Action Plan

WIDP’s Aims (1)

Second Kelly Market Review advocated greater focus on developing the infrastructure for delivering EU Landfill Directive targets.

WIDP aims to support Local Authorities in England manage the procurement of the new infrastructure required to reduce the amount of biodegradable municipal waste landfilled (relative to that produced in 1995)

• to 75% by 2010

• to 50% by 2013

• to 35% by 2020

WIDP’s Aims (2)

To build on several existing streams of work within the Waste Implementation Programme.

To bring together the resources and roles of Defra, Partnerships UK and 4ps in support of Authorities undertaking waste projects

WIDP Action Plan – Success Factors (1)

• Stable policy environment well communicated

• Effective communications

• Engagement of Energy Supply Industry and Government Energy Policy

• Support on planning process

• Programme affordability

WIDP Action Plan – Success Factors (2)

• Programme Direction and Monitoring

• Incentives for Authorities to cooperate and host facilities

• Market Development including stimulating capacity

• Pipeline Management

• Support for Authorities

• Programme Information

Pipeline Management Functions

• Communicating rules of PFI award rounds to LAs

• Managing allocation of PFI funds to projects

• Supporting development of all Projects (PFI and non-PFI projects)

• Communications with the bidding, funding and advisory communities

• Monitoring progress of projects in development and procurement

Growing Pipeline – PFI and PPP deals

06/07 07/08 09/10 10/11 11/12 12/1308/09

10

5

0

15

Closes pa

2. Who Does What?

Waste Strategy Programme (WIP) Board

WIDP Exec Board

See Next Page

WIP Structure and Governance

WIDP – Structure

Transactor Coordinatio

n (Ben Prynn)

Data Collection & Analysis

(Keith Rogers)

Programme Support

Office (Alan

Williams)

Project Development

& Scrutiny (John

Enright)

WIDP Exec Board John Burns Defra Michael Gerrard PUK Chris

Wilson 4ps

Policy and Market

Coordination (Melville Haggard) Guidance and

Contract Coordination

(Amar Qureshi)

Transactor Coordination Team

National Transactor Coordinator

Ben Prynn

South

Jeremy Seldon

North

Duncan Powell

Midlands

David Revell

London

John Enright

Projects

3. WIDP Transactors

Transactor Support for Authorities

• Point of contact for all communications with Defra

• Available for non-PFI projects as well as PFI projects

• Strengthens authority client team – does not substitute for the use of advisers

• Complements existing skills development and procurement QA processes

• Subject to an MoU

When Can Transactors Help?

Business Case

Procurement Stage

FBC developmentand scrutiny

Post procurementreview

Planning and Operations

Project Development

OJEU Notice

Final Tenders

Pre-qualification

We will work with authorities at any stage from project development to commissioning and throughout the operational phase.

Transactor Skills

• Procurement

• Contracts

• Governance/QA

• Guidance/best practice

• Waste sector knowledge

• Local government finance

• Project finance

• Planning

• Negotiations

• Project Management

• Liaison with Central Government

• Contacts with industry

• Defra Policy

• Multi Authority projects

• Member briefing

PFI Funding History

• 23 projects already allocated PFI funding:• 15 in implementation• 8 in procurement

• Allocation based on a “first come first served” principle

• Awards varied from £13m to £100m with an average of £46m - not linked directly to capex

PFI Funding Now

• PFI credit criteria (May 2006) still apply.

• CSR 07 allocated

• 2008/9 £600m

• 2009/10 £700m

• 20010/11 £700m

• Credits allocations to projects determined by relevant capex (minimum 50%)

PFI Credit Criteria

Criteria published in May 2006 emphasise:

• Inter-Authority Partnership working

• Diversion from landfill and residual waste treatment

• Municipal Waste Management Strategies

• Site availability and planning status

Plus

• Recycling levels

• Carbon implications of treatment

PFI Credits – Award Rounds

• Two step application process• Expression of Interest

• Outline Business Case

• Standardised EoI, OBC and FBC documentation

• Six monthly award rounds

PFI Credits – Award Rounds (2)

Winter 08/09Oct 08March 084

Summer 08April 08n/a3

Winter 07/08Oct 07n/a2

Summer 07n/an/a1

OBC ApprovalOBC Submission

EoI Submission

Round

Award Round 1 – 2 Projects in Procurement

Merseyside Waste Disposal Authority

• approved April PRG

• OJEU’d on 11 July 2007

North Yorkshire and City of York

• approved July PRG

• acquired sites

• OJEU’d 1 September 2007

PFI Credits – Award Round 2

• Covers projects which submitted Expressions of Interest before March 2007

• Projects Involved• Bradford

• Suffolk

• South Tyne and Waste Partnership

• Leeds

• Barnsley, Doncaster and Rotherham

• OBCs approved Feb – June 2008

Award Round 3 - 9 EoIs Received

• Essex CC

• Gloucestershire CC

• Leicestershire CC

• Lincolnshire CC

• MK/Northamptonshire CC

• North London Waste Authority

• Norfolk CC

• Plymouth/Torbay/Devon

• Staffordshire CC

Due to PRG by Sept 2008

Award Round 4

• Authorities submitted EoIs by 31 March 2008

• 12 EoIs received

• 10 progressing

• WIDP Transactors allocated

Due to PRG by Feb 2009

GuidancePublished or Under Consultation

Anticipated July 2008

December 2007 – 22 February 2008

Under consultationPayment Mechanism

Anticipated July 2008

December 2007 – 22 February 2008

Under consultationOutput Specification

Anticipated July 2008

December 2007 – 1 February 2008

Under consultationPrudential Borrowing – Frequently Asked Questions

August 2007-PublishedPlanning Systems Guidance and Planning Health Framework

Launch DateConsultation DateStatusGuidance

GuidanceTo be published shortly

Launch DateConsultation DateStatusGuidance

-

June 2008Anticipated February 2008 – March 2008

Anticipated to be published for consultation shortly

Project Governance

AnticipatedJune2008

- Anticipated to be published shortly

Options Appraisal

GuidanceUnder development

Launch DateConsultation DateStatusGuidance

Autumn/winter 2008

-Under developmentOpen Market EfW Contracts

Autumn 2008Summer 2008Under developmentContract

Autumn 2008-Under development Joint Working

Issues looking forward – 2008/9

• Carbon

• Renewable Energy/CHP

• Consortia working

• WDA partnership working

• SRF composition, use and fuel mixing

• Waste wood

Questions welcome!