Issue details

Decision type: Key

Reason Key: Expenditure > £1,000,000;

Decision status: Recommendations Approved

Notice of proposed decision first published: 16/03/2023

This decision will be taken under urgency procedures.

Reason for urgency:
The Council needs to make a timely decision to allow PFI contractors and their lenders to agree entering into a new refinancing agreement for the Croydon and Lewisham Streetlighting Contract. The nature of the process means as soon as legal documents are completed the Council needs to seek internal approval as the date of the Financial Close is set almost as soon material legal matters are finalised. It would be unadvisable to delay the Council’s decision as the longer it goes it could impact on the final gain benefit. The gain to the Council is determined by the national interest rates market and with the current macro economic climate indicating high levels of inflation that could mean an increase in interest rates which feeds into the refinancing exercise resulting in lower gains. The gains are generated because the overall cost of replacing existing lenders with new lenders is less than when the contract was initially entered into. This is largely driven by lower rates currently.

Anticipated restriction: Part exempt  - View reasons

Financial Impact: Expenditure or savings of up to £1,000,000;

Decision due: 16 Mar 2023 by Corporate Director of Resources (Section 151)

Lead member: Cabinet Member for Finance

Lead director: Corporate Director of Resources (Section 151)

Department: Resources Directorate

Contact: Nish Popat, Interim Head of Corporate Finance Email: nish.popat@croydon.gov.uk.