Dumfries and Galloway NHS Board Chief Executive’s Office Freedom of Information Mid North Crichton Hall Bankend Road Dumfries DG1 4TG  01387 272752  dg.feedback@nhs.net Ref.: 16-374 Date: 26 September 2016 FREEDOM OF INFORMATION Thank you for your request of 2 September 2016 The information requested can be found at http://www.dg-change.org.uk/documentsdiagrams/ Full Business Case – Redacted Outline Business Case – Redacted FBC_Addendum_and_appendices_REDACTED_ A1-Project Agreement 121001_NHS_D___G_Design_Concept The Project Agreement, the subject of your enquiry, is based on the pro-forma Non Profit Distributing (NPD) Model Form agreement issued by Scottish Futures Trust and available on their website Non-Profit Distributing — Publications — Scottish Futures Trust This information is therefore exempt under section 25(1) of the Freedom of Information (Scotland) Act 2002. The Model Form Agreement includes standard contract provisions for NPD regarding release of information regarded by the two parties to the contract as commercially sensitive. These provisions apply to the information requested. The SFT standard contract position is generally 2 years post handover of the completed building (project specifics will deal with the precise date for each contract). The Project financial model is therefore exempt under section 33(2)(b) however a copy of the summary section of the outputs of the model (attached) which provides details of the annual service payment, the forecast capital expenditure for the project and other significant financial data, some sensitive data has been redacted. The financial model and other information related to small works rates etc is considered confidential is exempt under section 36(2) of the FOI(S)A applies. Chairman: Philip N Jones Chief Executive: Jeff Ace Dumfries & Galloway NHS Board is the common name of Dumfries & Galloway Health Board Under section 20 (1) of the Act, if you are dissatisfied with the way NHS Dumfries and Galloway has dealt with your request, you have a right to request a review of our actions and decisions in relation to your request, and you have a right to appeal to the Scottish Information Commissioner. A request for review must be made within forty working days from 26 September 2016 and should, in the first instance, be in writing to Jeff Ace, Chief Executive, NHS Dumfries and Galloway, Mid North, Crichton Hall, Bankend Road, Dumfries, DG1 4TG or by e-mail to dg.feedback@nhs.net You must provide your name, an address for correspondence, details of your original request and why you want a review. If our decision is unchanged following review and you remain dissatisfied with this, you have the right to make a formal appeal to the Scottish Information Commissioner. Requests for appeal should be made in writing to the Scottish Information Commissioner, Kinburn Castle, Doubledykes Road, St Andrews, Fife, KY16 9DS. Telephone 01334 464610, Fax 01334 464611 E-mail: enquiries@itspublicknowledge.info Yours sincerely Freedom of Information Officer Project : Dumfries & Galloway Acute Services Redevelopment Model : Process to Financial Close; Active Scenario: Option 2 : IFRS Summary Mode: Bid Model Control Checks (Audit Sheet) Macro and Copy & Paste Checks Sources & Uses Ratios Balances (Incl. Services Margin, Equity Bridge and Funding) OK OK OK Overall Result Hardcoded Drawdown? Hardcoded Repayments? EIB Fixed? OK EIB Only EIB Only Yes Overall Result OK DSRA Prefund Memo Min Draw Check OK OK Uses of Funds - Construction Sources of Finance Senior Debt 1 (Aviva) Senior Debt 2 (EIB) Sub Debt 1 Sub Debt 2 Equity Bridge Equity Sub Total Other Sources Net Operating Cash Flows Interest on GIC Interest on Project Account Sub Total Uses of Finance Construction Non-Construction Finance Fees Repayment of Equity Bridge Pre-funding Reserve Accounts Corporation Tax Net MRA transfers in/out Net increase in VAT creditor Sub Total Interest Interest Expensed Interest Capitalised Bond Interest Accrued but not paid Net Interest Paid (Cash) 109,323 108,917 24,198 0 0 51 242,489 0 0 0 0 EIB Gearing Total Sources 0 109,323 108,917 24,198 0 51 242,489 528,408 528,408 7,826 Total Sources 778,722 Summary of Key Financial Returns & Ratios 0 242,489 Repayment Equity Bridge Senior Debt 1 (Aviva) Senior Debt 2 (EIB) Sub Debt 1 Sub Debt 2 Equity Sub Total 0 109,323 108,917 24,198 0 51 242,489 Corporation Tax Paid Surplus Paid Construction costs Operating costs Lifecycle costs Non construction set up costs Sub-debt interest paid Senior debt interest paid Equity Bridge interest paid Interest Paid Prior to Operations Financing Fees Sub Total Total Uses 30 32,122 212,613 73,621 53,816 6,310 37,545 103,339 0 10,414 6,424 536,233 778,722 Funder Metrics 1 (1=On, 0=Off) Nominal 5.12% 5.12% 11.29% 0.00% Senior Debt 1 (Aviva) Senior Debt 2 (EIB) Sub Debt 1 Sub Debt 2 Real 2.57% 2.57% 8.77% 0.00% 0.00% -14.58% 99.91% Min 1.246 1.278 1.213 1.213 Debt 90.00% Av Loan Life (Yrs) 16.46 15.73 16.62 0.00 Period 55.00 54.00 57.00 n/a Ending Sep 41 Mar 41 Sep 42 n/a Real 19,428 Nominal 19,733 Yr Ending Mar 19 0.00% 3.50% 0.00% n/a 230,119 n/a Unitary charge First Full Year Unitary Charge Funding Structure 10,414 0 0 10,414 Uses of Funds - Full Concession Funding Draw Down Equity Bridge Senior Debt 1 (Aviva) Senior Debt 2 (EIB) Sub Debt 1 Sub Debt 2 Equity Sub Total Revenues Revenues from Unitary Charge & Lifecycles Revenue Sub Total Interest Received Interest Received on cash and reserve accounts Ratios - Full Concession Loan Life Cover Ratio (Excl Mezz) Project Life Cover Ratio (Excl Mezz) Look forward Annual Debt service cover ratio (Excl M Look back Annual Debt service cover ratio (Excl Me 209,825 6,310 4,717 0 11,205 9 0 9 232,075 Cash Balance Total Uses 242,489 Sources of Funds - Full Concession IRRs - Full Concession Project IRR - Pre Tax Project IRR - Post tax Sub debt 1 IRR Sub debt 2 IRR Margins - Full Concession PAT as a % of turnover PBIT as % of turnover Effective Tax Rate OK OK OK OK 21.82 sec Sources of Funds - Construction XIRR Calculations On/Off? Funding DSRA Profile Monoline Fee Inputs IFRS Average 1.314 1.496 1.214 1.215 Sub Debt 10.00% Whole Life NPV's 1.214 1.214 Old Treasury Green Book New Treasury Green Book Trust Specific Availability Payment Surpluses Total Price Submission NPV 230,119 5,508 224,611 NPV using base date of 23-Aug-14 Availability Payment Surpluses Total Price Submission NPV 226,021 -5,396 220,625 QBA Including Passthrough Costs Excluding Pass through costs 3,986 3,986