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August Update

• Comhairle Members and senior officers met with John Swinney in July to discuss the project model and the way forward.  The Comhairle was instructed to continue with the current hybrid model but it was agreed that the Revenue Support Grant (RSG) payments could be re-phased, which would allow the financial model to be completed for the first time. 


• During the discussions on the project model, it was decided that, as it is now to be financed entirely by public funding, it was misleading to refer to the project as a “PPP” and therefore the title of the project has been changed to Western Isles Schools Project (WISP).


• Stage 1 of the project is almost complete and it is anticipated that the PSDP will be selected next month (September). The Comhairle’s decision at the special meeting held on 27 August has cleared the way for the selection of the PSDP to be recommended to the Comhairle meeting on 6 September.


• Once the PSDP has been appointed, there will be several months while the Comhairle/SPV agree the procurement strategy with the PSDP before commencing the stage 2 procurement process.


• In the meantime, the Design Team procurement, originally part of stage 2, has been progressed. Five Candidates have been shortlisted and the Comhairle aim for Invitations to Tender to be issued mid September with appointment by the end of November.

PROJECT STRUCTURE

The Comhairle, as the client, is committed to procuring the schools through a Hybrid PPP Model, which is outlined above. The Comhairle will borrow money from the Public Works Loan Board to fund the capital costs of the new schools.

The Comhairle will set up the Special Purpose Vehicle and intends to own 100% of that SPV; the Contract between the Comhairle and the SPV will be based on SSSC3. The Comhairle will provide the SPV with the Brief and Output Specification for the schools.

The Comhairle will procure a Private Sector Development Partner (PSDP) to partner the SPV in identifying and implementing the best strategy for the design, build and operation of the project schools.

ACRONYM LIST

CNES                 Comhairle nan Eilean Siar

FM                      Facilities Management

ITPD                    Invitation to Participate in the Dialogue

OBC                    Outline Business Case

OJEU                  Official Journal of the European Union

PFI                     Private Finance Initiative

PPP                   Public Private Partnership

PQQ                  Pre-qualification questionnaire

PSDP                Private Sector Development Partner

SSSC                Scottish Schools Standard PPP Contract

SPV                  Special Purpose Vehicle