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July Update

• The evaluation report for the PSDP has been concluded and sent to the Chief Executive for approval.

• Responses having been received in respect of the design team appointment, these have been evaluated and a report recommending a shortlist of five has been sent to the Chief Executive for approval.

• Decisions in respect of both these reports are pending the outcome of discussions with the new administration in Edinburgh. A meeting was held between Comhairle elected and John Swinney MSP to discuss the project and possible ways forward. The Cabinet Secretary indicated that he hopes to let us have his decision by mid August at the latest.

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