Decision details

Cabinet received a report in December 2022 advising the details of the Streetlighting PFI including the background of the arrangement.

RESOLVED: To

Corporate Director of Resources and Section 151 Officer, in consultation with the Monitoring Officer and Cabinet Member for Finance is recommended:

1.1.         To note the due diligence undertaken since the December 2022 Cabinet report and approve the upfront refinancing gain, with the final figure being identified on the day of Financial Close as detailed within draft Protocol attached in Appendix D.

1.2.         To approve the Local Government Contracts Act Certificate (provided in Appendix F) and to approve entering into the Direct Agreement (Appendix G).

1.3.         To note the Senior Lender’s Direct Agreement (provided in Appendix G) and note within Appendix B under paragraph 2.5 and section 10 that this agreement is a standard practice for replacing old lenders with new and does not materially impact on the Council.

1.4.         To approve the Council taking an upfront gain through a cash receipt as opposed to a reduced Unitary Charge payment.

1.5.         To delegate to Head of Finance – SCRER to enter into any agreements to give effect to the decisions in this report, including the Deed of Variation to the Project Agreement, at the Financial Close call or after so long as they are not materially different to the position provided within this report.

1.6.         To approve that Head of Strategic Finance, Planning and Commercial at London Borough of Lewisham to speak on behalf of Croydon at Financial Close.

1.7.         To approve that the Council retains the gain allocated to DfT in return for reduced PFI Credits from 2026/27.

1.8.         Note the legal report, Appendix B, on variations made to the Project Agreement to reflect the outcome of the refinancing on the PFI.

As set out in Part A of report

As set out in Part A of report

None