Title: United Kingdom Treasury - Finance guidance

Languages: English

Type: Document

Region: Europe and Central Asia

Country: United Kingdom

Topics: Financing and Risk Mitigation

Keywords: Value for Money (VFM)

Document Details:

Application note: interest and inflation risk

This application note has been designed to help Authorities understand and evaluate cost effective strategies for managing interest rate and inflation risks in PPP transactions.

This guidance note, previously published as Annex 2 of SoPC Version 3, provides guidance on the calculation and use of internal rates of return (IRR) in PPP contracts.


Preferred bidder debt funding competitions

The public sector consultation of preferred bidder debt funding competitions has concluded, and the guidance has been published in draft-outline for wider feedback.



This Code of Conduct sets out the basis upon which individual Authorities will approach the refinancing by private sector contractors of early PFI transactions. It is a voluntary Code to enable private sector contractors to share refinancing gain with the public sector on a consistent and equitable basis.

This guidance note, previously published as Annex 1 of SoPC Version 3, is intended to assist authorities and their financial advisers in calculating Refinancing Gains.



Government has previously expressed its concern that the Spens formula, which applies to listed bonds in the UK, creates an extra cost of termination for a PFI project. To address this concern HM Treasury requires all PFI contracts funded through the capital markets to contain a modified Spens clause. The above guidance has been issued to assist Authorities determine the most appropriate form of modified Spens to be applied.


Technical update 2010

This document sets out the recent changes made to PPP/PFI and updates the delivery framework for projects going forward.



Related Resources

The Treasury provides guidance on a number of topics. This includes the publication A new approach to Public Private Partnerships and Standardisation of PF2 contracts (December 2012) and guidance on assessing the value for money of privately financed projects, as well as finance, procurement and contract management.

Updated: March 29, 2021