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Footnotes
1. Current construction inflation taken from BICS, ONS Tender Price Inflation, March 08 (year on year percentage change).
2. A small SFTSBC Delivery Team was formed in January 2008, tasked with producing this SBC, under direction of the SFT Steering Group.
3. The hub initiative is designed to promote joint working in the public sector, and it's aim is the efficient provision of community based infrastructure.
4. A suggestion was mooted that SFT as an entity should be constituted as a Local Authority and thus, in theory, it would be able to borrow from PWLB. As this would likely require legislative intervention the concept was not developed further.
5. TfL is rated AA by Standard & Poor's. The basis for this rating includes "Letters of Comfort" provided by the Department of Transport. TfL's £200m 5% bond due in 2035 was issued at a spread of circa 0.3% over the comparable gilt, i.e. similar to the comparable PWLB interest rate.
6. When this work was undertaken it was recognised that it represented a snapshot of the financial markets on a particular day, however since this work was completed there has been significant, and extensively reported market upheaval, making the costs of any future financing solutions less predictable, at least in the short to medium term.
7. http://www.scotland.gov.uk/Topics/Economy/Key-Publications/ges07
8. http://www.scotland.gov.uk/Publications/2008/01/22120012/0
9. http://www.scotland.gov.uk/Publications/2008/02/04111709/0
10. Unfortunately, comparative evidence on the level of public investment in Scotland relative to other countries is limited. Instead, it is necessary to use UK data as a proxy.
11. It is necessary to treat any international comparisons with a degree of caution. The size and scope of government activity in the economy will, for historic reasons, vary across countries while differences in the level of privatisation and public finance initiatives may also be important. Therefore, an apparently lower level of investment may not necessarily reflect a lower level of infrastructure investment.
12. Partnerships for Schools established to develop and deliver £2.5 - 3bn of investment in schools in England per annum, is an NDPB 100% owned by DFES, but is a contractual JV between PUK and DFES. BSFI the investment company for PfS is a private sector classified LLP formed between DFES and PUK.
13. Analysis of 36 schools PPP projects (selected as a sample as good data is readily available) shows the impact on capital costs through time slippage during procurement alone was worth between 2.6-5%, or approximately £83 to £160m. Time slippage risk during construction is transferred for these PPP contracts.
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