The Private Finance Initiative (PFI)

Additional PFI Guidance

Section 3.6 - Credit guarantee finance technical note and draft documentation

Following the publication of PFI: Meeting the Investment Challenge in July, where the Government set out its plan to test new ways to finance certain PFI projects, HM Treasury is now publishing a Technical Note on the Credit Guarantee Finance scheme “CGF Technical Note 1” – setting out in more detail how a CGF scheme is intended to work in practice.

In addition to the Technical Note, we are publishing draft documentation for the CGF programme, prepared for HM Treasury by Linklaters. These draft documents are:

A standard public sector PFI/PPP loan facility term sheet;
An indicative guarantee facilities term sheet for PFI/PPP projects;
Draft forms of the guarantee to be provided by the CGF guarantors;
A commentary on the standard public sector PFI/PPP loan facility term sheet and the indicative guarantee facilities term sheet; and
A draft form of the letter of clarification to be issued by the relevant Public Sector Finance Provider in respect of each CGF-funded PFI/PPP Project.

We would welcome written comments on the CGF Technical Note 1 and draft documentation.

Comments on the draft term sheets should be directed to Bruce White and Stuart Rowson at Linklaters, General Line: 0207 456 2000 or via email Bruce.White@linklaters.com and Stuart.Rowson@linklaters.com

The documents are available below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.

3.6.1 CGF Technical Note 1 (43KB)
3.6.2 PDF file of Standard public sector PFI/PPP loan facility term sheet (61KB)
3.6.3 PDF file of Indicative guarantee facilities term sheet for PFI/PPP projects (48KB)
3.6.4 PDF file of Draft form of the guarantee for banks and/or financial institutions (78KB)
3.6.5 PDF file of Draft form of the guarantee for monoline insurers (116KB)
3.6.6 PDF file of a commentary on the standard public sector PFI/PPP loan facility term sheet and the indicative guarantee facilities term sheet (52KB)
3.6.7 PDF file of a draft form of the letter of clarification to be issued by the relevant Public Sector Finance Provider in respect of each CGF-funded PFI/PPP Project (1KB)