Programme and Project Partners (PPP)
PPP Indexation Guidance
“A long term partnership with the supply chain creating an
enduring capability which is recognised for effective and efficient
delivery of the Sellafield Mission”.
Project Title:
PPP Management
Project No.:
35/10324
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Document Reference:
Date of Issue:
Level of Checking:
STR/PPP/PROJ/000xx/1
8th November 2021
Level One
Producer:
Department:
Group:
Christine Murphy
Intelligent Client Finance
Project Delivery Directorate
Checker:
Checker’s Signature:
David Twelvetree, Head of Technical Accounting
Level of Checking in
accordance with Sellafield Ltd
Supporting Practice (SLP)
1.02.42
Date:
Approver:
Approver’s Position:
Approver’s Company:
Approver’s Signature:
Stuart Latham
Head of Intelligent Client
Sellafield Ltd
Date:
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Table of Contents
1.0
Introduction and Purpose ....................................................................... 4
2.0
Business Case Indexation ...................................................................... 4
3.0
Baseline Indexation ................................................................................ 5
4.0
Major Project Total Price Indexation ...................................................... 5
5.0
Incentive Fund Profit Indexation ............................................................. 5
6.0
Aligned Incentive Fund Indexation ......................................................... 7
Reference Table .............................................................................................. 7
Glossary of Terms............................................................................................ 7
History.............................................................................................................. 8
Appendix 1 – Extracts of NDA Inflation Metrics and mapping to Supply Chain
indexation factors ............................................................................................. 9
Appendix 2 – Example of Sellafield Internal Resource Composite Tariff Rates
indexation factors ........................................................................................... 10
Appendix 3 – Example of indexed baseline and corresponding MPTP .......... 11
Appendix 4 – Base Data and Calculation of Options 1-3 on IFP.................... 12
Appendix 5 – Example showing AIF daily interest calculation ....................... 15
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1.0
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Introduction and Purpose
The purpose of this document is to outline the indexation methodology for sanction, baseline,
Major Project Total Price (MPTP) and associated Incentive Fund Profit (IFP) linked to the
achievement of Project Wide Objectives (PWOs).
2.0
Business Case Indexation
All business cases are indexed in line with HM Treasury Green Book at 2% compound (see
figure 1). The information is provided in current year money values and escalated money
values as shown in the example below:
Example:
The business case table below shows real in 2020/21 money values and the inflated at
2% compound.
Real 2020/21 Money Values
Inflated 2% from 2020/21 Money Values
Prior Years
Yr 1
2011/12-2020/21 2021/22
Lifetime Costs (£m)
Base (incl. Covid-19 up to June 2021)
Real
MPTP (incl. Covid-19 up to June 2021)
P50 (incl. Covid-19 up to June 2021)
P80 (excl. Covid-19 beyond June 2021)
P80 (incl. Covid-19 beyond June 2021)
Reference Class Forecasting (RCF) / O Bias
128.719
128.719
128.719
128.719
128.719
128.719
Funding Operating Plan (P50)
Variance (P50)
Inflated
(2%)
Base (incl. Covid-19 up to June 2021)
MPTP (incl. Covid-19 up to June 2021)
P50 (incl. Covid-19 up to June 2021)
P80 (excl. Covid-19 beyond June 2021)
P80 (incl. Covid-19 beyond June 2021)
Reference Class Forecasting (RCF) / O Bias
Funding Operating Plan (P50)
Variance (P50)
128.719
128.719
128.719
128.719
128.719
128.719
Yr 2
2022/23
Yr3
2023/24
Yr4
2024/25
Yr5
2025/26
Yr6
2026/27
Yr7 onwards
2027/28-2032/33
Total
90.399
91.558
100.190
100.190
103.894
110.001
162.698
167.245
177.089
180.709
187.474
198.404
104.923
107.015
116.859
120.479
124.807
132.276
92.825
95.001
104.845
110.878
114.721
121.735
74.522
79.585
89.429
95.463
98.682
104.810
60.848
65.438
75.281
83.728
86.375
91.927
103.128
112.092
145.833
238.751
243.284
262.128
818.061
846.654
938.246
1,058.918
1,087.956
1,150.000
116.333
-16.142
82.636
94.454
94.771
22.088
92.207
93.389
102.194
102.194
105.972
112.201
169.271
174.002
184.243
188.010
195.048
206.419
111.345
113.565
124.012
127.853
132.447
140.372
118.078
-15.884
85.553
98.691
100.078
23.933
293.739
100.399
100.477
102.832
113.487
120.018
124.177
131.770
82.278
87.869
98.737
105.399
108.953
115.719
68.524
73.693
84.779
94.292
97.272
103.524
120.123
130.588
170.431
283.696
288.978
311.475
872.943
904.657
1,006.602
1,150.181
1,181.565
1,250.199
303.709
106.741
Note 1: There may be slight discrepancies in totals due to rounding
Note 2: MPTP stated includes historic project costs but excludes AIF
In the above table, to calculate the inflated value of Base 2021/22
£90.399m*1.02 = £92.207m inflated
To calculate the inflated value of Base 2022/23
£162.698m*1.02*1.02 = £169.271m inflated (and so on for future years)
Figure 1 – HM Treasury Green Book The Green Book: appraisal and evaluation in central
government - GOV.UK (www.gov.uk)
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3.0
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Baseline Indexation
The Sellafield baseline is in current financial year money values (mid-year). The Sellafield
baseline is indexed annually at the start of the financial year using indexation data provided by
Franklin and Andrews who are appointed by the NDA for the supply chain baseline values.
The process steps are:
1. Forecast indexation for the current financial year
2. Reconciliation of prior year actual indexation against the prior year forecast
3. Items 1 and 2 are combined to an indexation factor and applied to the baseline to go for
the current financial year onwards.
The Franklin and Andrews information is provided against specific commodities e.g. steelwork,
civils, pipework. These are then mapped to the code of account and the indexation factor for
each code of account is applied to the baseline to go for the current financial year onwards.
Please refer to Appendix 1 for extracts of the NDA Inflation Metrics provided by Franklin and
Andrews and the mapping to the SL code of accounts.
The internal resource costs within the baseline are indexed taking account of any
agreed/forecast pay award and other impacts to the resource costs e.g. changes to employer’s
pension contributions, employer’s national health insurance contributions. The baseline is built
based on average tariff rates by profession and the baseline is updated to reflect any change
to current salary costs and effective hours. The change is applied to the baseline as a factor.
Appendix 2 shows the movement in tariff rates by profession from 2020/21 to 2021/22 and the
movement expressed as a factor.
4.0
Major Project Total Price Indexation
Section 14.8 of the Aligned Incentive Agreement details that indexation of the MPTP is applied
using the Basket of Indices; this is in line with indexation of the baseline as described in
section 3.0 above.
The requirement is there is one baseline that the project is managed against. The calculation
of the MPTP is completed based on the relevant scope of the indexed baseline. Appendix 3
shows an example of the indexed baseline and the corresponding indexed MPTP.
5.0
Incentive Fund Profit Indexation
Incentive Fund Profit (IFP) is achieved based on the delivery of Project Wide Objectives
(PWO). The contract states that IFP is 5% of the MPTP, however, it does not state whether it
is against the indexed value of the MPTP. From achievement of PWO’s the related IFP once it
has been transferred to the AIF attracts indexation at bank of England base rate plus 1% (the
equivalent of bank account interest). Detailed below are some scenarios to evaluate the
options to apply indexation to IFP.
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Adjustment events are applied against all live PWOs at the time the adjustment event is
agreed.
Option 1 – IFP is not indexed, only adjustment events impact the total value of IFP at the time
the adjustment event is agreed. The value of the IFP relating to the achievement of PWOs is
fixed and on achievement will attract the Aligned Incentive Fund (AIF) Indexation at Bank of
England base rate plus 1%. The value of IFP will not equal 5% of the indexed MPTP.
Option 2 – Indexation of IFP is applied against live PWOs through indexation of the baseline
using Franklin and Andrews rates. Once PWOs are achieved the value transferred to the AIF
is subject to indexation at Bank of England base rate plus 1% and baseline indexation is no
longer applied. If the PWO is partially achieved any remaining balance is transferred to the
golden milestone; this will attract baseline indexation until achievement. The value of IFP will
not equal 5% of the indexed MPTP.
Option 3 – Indexation of IFP is applied against live PWOs through indexation of the baseline
using Franklin and Andrews rates. Once PWOs are achieved the value transferred into the
AIF is subject to indexation at Bank of England base rate plus 1%. Baseline indexation will
continue, this will ensure the value of IFP in total is equal to 5% of the MPTP i.e. the value is
spread over the live PWOs.
Appendix 4 shows the workings for the 3 options against a base set of data.
Summary of the Options
2018-19
2019-20
2020-21
2021-22
IFP
50,000
32,060
27,121
27,121
Option 1
AIF
0
18,188
23,503
23,855
Total
50,000
50,248
50,624
50,977
IFP
51,463
33,320
28,360
28,447
Option 2
AIF
0
18,761
24,313
24,677
Total
51,463
52,081
52,673
53,124
IFP
51,463
33,458
28,622
28,838
Option 3
AIF
0
18,779
24,376
24,742
Total
51,463
52,238
52,998
53,580
Considerations of each option
 Option 1 – simple to administer, however how does this fit with the intent of the
contract. Could there be a challenge from the partners that it does not tie into the
contract and the definition that states IFP is equal to 5% of the MPTP. Benefit to SL in
the lower value included in the AIF, however, have the value this financial year has
already been indexed.

Option 2 – complexity in applying different indexation to the value of IFP for live and
achieved PWOs. This will increase in complexity as more projects set the major project
baseline following Detail Design Gate. Again, there could be a challenge from the
partners that it does not tie into the contract and the definition that states IFP is equal to
5% of the MPTP. Benefit to SL in the lower value included in the AIF.

Option 3 – simpler to administer, cross check can be done to ensure IFP equals 5% of
the indexed MPTP. Does this better tie into the intent of the contract by ensuring IFP is
equal to 5% of the MPTP, thus avoiding challenge from the partners?
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Preferred Option
To keep in line with the overall statement in the contract that IFP is 5% of the MPTP and to
keep management of the AIF as simple as possible, option 3 is the preferred option.
6.0
Aligned Incentive Fund Indexation
Schedule 6 of the Aligned Incentive Agreement defines that the Aligned Incentive Fund (AIF) is
indexed on the first day of the financial year based on the average balance of the AIF for the
previous financial year based on 1% above the Bank of England base rate (if the Bank of
England base rate is greater than -1%, the interest to be added is 0%)
The AIF holds the value of Incentive Fund Profit relating to the achievement of PWOs,
pain/gain on project completion, the cost of any breaches, defects resolution and payments
made from the fund. Indexation is calculated daily and the value of the indexation from the
previous financial year is added to the AIF on 1st April. This is shown in Appendix 5.
Reference Table
Reference
1
2
3
Description
Incentivisation Guidance Document STR/PDDTP/PROJ/00010
Intelligent Client P50 Risk and EU Management (TBC)
Aligned Incentive Fund Guidance Document
STR/PDDTP/PROJ/00028
Glossary of Terms
Acronym
ADT
AIA
AIF
ASFL
DDG
EU
GL
HMG
IAS
IC
IFP
IFRS
IPDG
KPI
MPTP
NDA
PPP
Description
Aligned Delivery Team
Aligned Incentive Agreement
Aligned Incentive Fund
Annual Site Funding Limit
Detail Design Gate
Estimating Uncertainty
General Ledger
Her Majesty’s Government
International Accounting Standard
Intelligent Client
Incentive Fund Profit
International Financial Reporting Standard
Initiate Project Delivery Gate
Key Performance Indicator
Major Project Total Price
Nuclear Decommissioning Authority
Programme and Project Partners
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Acronym
PWO
SCN
SRP
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Description
Project Wide Objective
Service Commencement Notice
SPRS (Sellafield Product and Residue Store) Retreatment Plant
History
Revision
Date
1
8th November 2021
Reason for Revision
Initial guidance
established
Revised by
Chris Murphy
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Appendix 1 – Extracts of NDA Inflation Metrics and mapping to Supply
Chain indexation factors
1. NDA Inflation Metrics Extract:
2. Mapping of NDA Inflation Metrics to SL Code of Accounts Extract:
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Appendix 2 – Example of Sellafield Internal Resource Composite Tariff
Rates indexation factors
Baseline Plan 2021/22 TARIFF RATES
New Composite
Resource Code
100000
100001
130000
131000
132000
133000
134000
135000
230000
231000
232000
233000
234000
235000
236000
237000
260000
261000
262000
263000
264000
265000
266000
270000
271000
272000
273000
274000
275000
276000
277000
280000
300000
301000
400000
401000
402000
403000
404000
405000
406000
407000
408000
500000
501000
502000
503000
504000
505000
506000
507000
508000
509000
510000
511000
513000
600000
601000
602000
603000
700000
701000
800000
810000
New Composite Resouce Code Title
Labour Out Year Planning
Labour Out Year Planning - iCBM
Control Room Operators
Facility Operators & General Workers
Operations Management
Operations Support
Safe Systems of Work Controllers
Operations Shift Managers & Team Leaders
Mechanical Design
C,E and I Design
Process Engineering Design
Construction & Construction Design
Civil, Struct and Arch Design
Commissioning Engineer
Project Eng Mgt & Design
Pre Operations Engineering
Maintenance, Electrical & Instruments - Craft
Maintenance Management
Maintenance Support
Maintenance Mechanical - Craft
Other Maintenance Trades
Maintenance Team Leaders & Supervisors
Plant Engineering - Works Control Centre
Plant Engineering - Mechanical
Plant Engineering - Electrical & Instrumentation
Plant Engineering - Control Systems
Plant Engineering - Civil
Plant Engineering - Standards
Plant Engineering - Asset Management
Plant Engineering - Management
Plant Engineering - System Engineering
Integrated Work Management
Technical Support
Analytical Support
Safety Support
Health Physics Monitoring
Fire & Rescue
Medical
Safety Cases
Environmental Support
Safety Assessment
Security
Emergency Preparedness
Human Resources
Procurement
Quality
Finance
Training
Commercial & marketing
Safeguards (Nuc Mat Actg)
Public Affairs
Administration & Secretarial
Information Technology
Business Improvement
Strategy & Operational Research
Performance Improvement
Project Management
Project Controls & Risk Management
Risk
Business Programme Management
Site Management
Legal & Exec Support
Trainees
Trainees
2020 BP Tariff
Rate
50.85
50.85
49.33
47.03
76.78
50.63
56.94
65.01
51.61
53.63
56.91
50.81
55.35
52.55
69.94
54.55
47.08
66.48
50.80
47.31
48.72
57.46
51.59
54.52
52.57
51.59
50.54
51.92
55.05
84.62
55.05
49.21
56.07
47.12
55.09
47.95
52.99
56.24
54.40
53.04
56.62
51.59
52.05
57.30
57.45
54.42
55.00
41.43
76.83
50.60
60.56
29.21
59.93
61.00
55.06
47.20
57.13
53.05
50.57
66.90
211.14
69.47
19.60
18.46
2020 Average
Effective Hours
2021 BP Tariff
Rate
1479.91
1479.91
1448.42
1433.30
1438.50
1460.69
1418.29
1435.46
1540.47
1530.12
1521.04
1566.79
1566.92
1503.33
1558.49
1474.19
1436.34
1414.52
1449.71
1440.44
1428.64
1424.27
1459.14
1441.89
1451.06
1459.14
1540.55
1457.43
1476.98
1458.96
1452.20
1454.47
1460.39
1459.75
1488.41
1489.34
1463.49
1524.92
1447.12
1491.16
1477.70
1512.79
1451.60
1487.74
1519.44
1483.31
1502.59
1549.73
1509.58
1491.43
1507.56
1570.55
1590.14
1483.98
1509.39
1483.82
1519.48
1504.03
1512.76
1490.58
1569.00
1515.58
1567.52
1571.40
51.54
51.54
49.47
48.15
77.87
50.83
58.79
67.42
52.30
52.25
57.80
50.95
53.38
54.14
71.76
54.06
48.19
69.32
50.90
48.56
49.23
59.66
51.56
56.22
55.47
51.56
52.95
51.51
62.91
86.87
57.16
49.97
56.41
47.78
56.50
47.00
56.38
58.28
57.63
53.33
56.54
53.38
50.34
56.86
58.06
53.28
57.56
39.59
86.24
51.56
65.64
29.11
57.58
58.76
56.26
49.67
57.34
54.45
52.23
67.25
201.28
64.28
18.85
16.54
2021 Average
Effective Hours Indexation Factor
1485.48
1485.48
1453.63
1443.74
1449.45
1459.77
1424.53
1442.36
1532.27
1534.21
1524.80
1555.24
1556.72
1501.42
1557.53
1481.86
1444.72
1420.66
1449.35
1445.14
1432.18
1432.64
1462.02
1442.65
1456.87
1462.02
1471.32
1464.42
1447.03
1452.27
1452.92
1457.36
1469.61
1469.02
1494.52
1495.54
1461.01
1520.37
1446.75
1494.07
1487.73
1491.78
1450.12
1492.94
1525.95
1494.10
1510.93
1549.47
1508.02
1487.59
1508.20
1577.41
1600.57
1491.26
1519.53
1492.32
1516.81
1501.61
1524.29
1494.43
1562.42
1520.30
1583.66
1584.33
1.0135
1.0135
1.0029
1.0239
1.0142
1.0039
1.0325
1.0371
1.0134
0.9742
1.0156
1.0028
0.9645
1.0302
1.0261
0.9910
1.0235
1.0427
1.0019
1.0265
1.0105
1.0383
0.9995
1.0312
1.0552
0.9995
1.0476
0.9921
1.1428
1.0266
1.0383
1.0155
1.0060
1.0141
1.0255
0.9801
1.0639
1.0363
1.0593
1.0054
0.9986
1.0348
0.9672
0.9924
1.0106
0.9790
1.0465
0.9557
1.1225
1.0190
1.0839
0.9965
0.9608
0.9633
1.0218
1.0524
1.0037
1.0264
1.0329
1.0052
0.9533
0.9253
0.9615
0.8959
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Appendix 3 – Example of indexed baseline and corresponding MPTP
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Appendix 4 – Base Data and Calculation of Options 1-3 on IFP
Base Data:
BASELINE
F&A indexation
BoE + 1%
Example assuming PPP from day 1
MPTP Tracker
2.0%
1.50%
ACTUALS TO DDG (2014-2017)
Original MPTP
Escalated MPTP 2018
Escalated MPTP 2019
Escalated MPTP 2020
Escalated MPTP 2021
2017
200,000
200,000
200,000
200,000
200,000
2018
150,000
153,000
153,000
153,000
153,000
2019
150,000
153,000
156,060
156,060
156,060
2020
150,000
153,000
156,060
159,181
159,181
2021
150,000
153,000
156,060
159,181
162,365
Outyears
200,000
204,000
208,080
212,242
216,486
Latest MPTP
200,000
153,000
156,060
159,181
162,365
216,486
Aligns to BCWS
Cumulative 5%
PWO value
50,000
50,800
51,463
51,983
52,355
Grand Total
1,000,000
1,016,000
1,029,260
1,039,664
1,047,092
0
1,047,092
52,355
ADJUSTMENT EVENTS
Example assuming PPP from day 1
MPTP Tracker
Original MPTP
Escalated MPTP 2017-18
Escalated MPTP 2018-19
Adjustment Event 2019-20 (Pd4)
Escalated MPTP 2019-20
Adjustment Event 2020-21 (Pd4)
Escalated MPTP 2020-21
Escalated MPTP 2021-22
Latest MPTP
ACTUALS TO DDG (2014-2017)
2017
200,000
200,000
200,000
2018
150,000
153,000
153,000
2019
150,000
153,000
156,060
200,000
153,000
156,060
2020
150,000
153,000
156,060
750
159,946
200,000
200,000
153,000
153,000
156,060
156,060
159,946
159,946
400,000
306,000
312,120
319,892
2021
150,000
153,000
156,060
750
159,946
1,700
164,879
164,879
Outyears
200,000
204,000
208,080
Grand Total
1,000,000
1,016,000
1,029,260
1,500
1,041,194
1,700
1,050,372
1,054,701
0
1,054,701
212,242
216,486
220,816
329,758
437,303
Aligns to BCWS
Option 1 = IFP based on 5% of Original MPTP, plus adjustment events
Project Wide Objective
Weighting
PWO 1
20%
2018/19
IFP Value
AIF Value
PWO 2
20%
100%
Pd3
10,000
0
80%
Pd6
Workings
Workings
Workings
Workings
Workings
IFP Value
Original MPTP 5% value split per PWO
Adj Event Pd4
MPTP 5% value split per PWO
transfer to AIF
transfer to Golden milestone
indexed
10,000
AIF transfer Value
Daily Interest
AIF Value
Fund value + transferred in year
BoE + 1%
with interest
2020/21
Achieved in year
@ end of period
PWO 3
20%
10,000
0
0%
-
PWO 5
30%
5,000
0
0%
10,000
19
10,019
0
5,000
9
5,009
0
0
10,019
10,000
113
10,113
8,015
60
8,075
0
0
0%
-
50%
Pd9
Workings
Workings
Workings
Workings
Workings
IFP Value
MPTP 5% value split per PWO
Adj Event Pd4
MPTP 5% value split per PWO
transfer to AIF
transfer to Golden milestone
indexed
10,000
8,015
10,000
8,015
0
AIF transfer Value
Daily Interest
AIF Value
Fund value + transferred in year
BoE + 1%
with interest
10,113
152
10,264
0%
-
2.0%
1.50%
PWO Total
15,000
0
50,000
0
MPTP 5%
50,000
50,000
50,000
75
50,075
18,015
0
32,060
50,000
75
5,009
15,000
28
15,028
0
2,004
17,032
0
0
50,075
0
0
18,015
173
18,188
50,075
85
50,160
5,024
0
27,121
50,075
85
0%
-
50,075
50,248
0%
5,009
14
5,024
0
0
10,019
28
10,047
5,024
-5,024
0
5,024
17,032
43
17,074
0
5,024
22,098
8,075
121
8,196
5,024
19
5,042
0
0
0
23,211
292
23,503
50,333
0
50,160
0
0
27,121
50,160
23,503
353
23,855
50,624
0%
-
0%
-
Not indexed
50,000
50,000
50,000
50,075
50,075
50,160
50,160
50,160
0%
-
10,000
19
10,019
8,015
-2,004
0
10,000
10,000
0%
-
2021/22
Achieved in year
@ end of period
PWO 4
10%
Cumulative 5%
PWO value
50,000
50,800
51,463
51,538
52,060
52,145
52,519
52,735
52,735
F&A indexation
BoE + 1%
10,000
0
2019/20
Achieved in year
@ end of period
Cumulative 5%
PWO value
50,000
50,800
51,463
75
52,060
85
52,519
52,735
0%
-
50,160
50,624
0%
-
Workings
Workings
Workings
IFP Value
MPTP 5% value split per PWO
transfer to AIF
transfer to Golden milestone
indexed
10,000
8,015
5,024
5,024
0
0
0
0
5,024
22,098
0
0
22,098
AIF transfer Value
Daily Interest
AIF Value
Fund value + transferred in year
BoE + 1%
with interest
10,264
154
10,418
8,196
123
8,319
5,042
76
5,118
0
0
0
0
50,160
50,977
OFFICIAL SENSITIVE - COMMERCIAL
STR/PPP/PROJ/000xx/1
Page 12 of 15
OFFICIAL SENSITIVE - COMMERCIAL
STR/PPP/PROJ/000xx/1
Page 13 of 15
Option 2 = IFP indexed in line with 5% of MPTP until achievement of first PWO
Project Wide Objective
Weighting
PWO 1
20%
2018/19
IFP Value
AIF Value
Workings
Workings
Workings
PWO 2
20%
10,293
0
2019/20
Achieved in year
@ end of period
100%
Pd3
PWO 3
20%
10,293
0
80%
Pd6
10,293
Workings
Workings
Workings
IFP Value
MPTP 5% value split per PWO
Adj Event Pd4
indexation element
indexation element pro rata over live
MPTP 5% value split per PWO
transfer to AIF
transfer to Golden milestone
indexed
AIF transfer Value
Daily Interest
AIF Value
Fund value + transferred in year
BoE + 1%
with interest
2020/21
Achieved in year
@ end of period
F&A indexation
BoE + 1%
10,293
0
0%
-
PWO 5
30%
5,146
0
0%
10,293
19
104
104
10,416
0
5,146
9
52
52
5,208
0
0
10,416
10,293
116
10,408
8,291
62
8,353
10,293
10,293
0%
-
MPTP 5% value split per PWO
Adj Event Pd4
indexation element
indexation element pro rata over live
MPTP 5% value split per PWO
transfer to AIF
transfer to Golden milestone
indexed
10,293
8,291
75
75
10,293
8,291
0
AIF transfer Value
Daily Interest
AIF Value
Fund value + transferred in year
BoE + 1%
with interest
10,408
156
10,565
0%
-
15,439
0
51,463
0
MPTP 5%
51,463
51,463
51,463
75
522
365
51,903
18,583
0
33,320
51,463
75
522
5,208
15,439
28
157
157
15,624
0
2,073
17,696
0
0
0
51,903
0
0
0
18,583
178
18,761
51,903
85
374
206
52,194
5,250
0
28,360
52,060
85
374
52,194
50%
Pd9
Workings
Workings
Workings
Workings
Workings
Workings
Workings
IFP Value
PWO Total
0%
-
10,293
19
104
52
10,364
8,291
-2,073
0
104
0%
-
2021/22
Achieved in year
@ end of period
PWO 4
10%
2.0%
1.50%
0%
-
52,060
52,081
0%
5,208
14
37
37
5,259
0
0
10,416
28
75
56
10,500
5,250
-5,250
0
5,259
17,696
43
112
112
17,851
0
5,250
23,101
8,353
125
8,478
5,250
20
5,270
0
0
0
0
24,011
301
24,313
52,194
216
87
52,280
0
0
28,447
-325
216
24,313
365
24,677
52,280
0%
-
0%
-
51,538
0%
-
52,145
52,519
52,673
0%
-
Workings
Workings
Workings
Workings
Workings
Workings
IFP Value
MPTP 5% value split per PWO
indexation element
indexation element pro rata over live
MPTP 5% value split per PWO
transfer to AIF
transfer to Golden milestone
indexed
10,293
43
8,291
43
5,250
43
5,259
22
22
5,281
0
10,293
8,291
5,250
0
0
0
5,281
23,101
65
65
23,166
0
0
23,166
AIF transfer Value
Daily Interest
AIF Value
Fund value + transferred in year
BoE + 1%
with interest
10,565
158
10,723
8,478
127
8,605
5,270
79
5,349
0
0
0
0
52,519
52,735
541
53,124
OFFICIAL SENSITIVE - COMMERCIAL
STR/PPP/PROJ/000xx/1
Page 13 of 15
OFFICIAL SENSITIVE - COMMERCIAL
STR/PPP/PROJ/000xx/1
Page 14 of 15
Option 3 = IFP is equal to 5% of indexed MPTP
F&A indexation
BoE + 1%
Project Wide Objective
Weighting
PWO 1
20%
2018/19
IFP Value
AIF Value
PWO 2
20%
10,293
0
2019/20
Achieved in year
@ end of period
100%
Pd3
10,293
0
80%
Pd6
Workings
Workings
Workings
Workings
Workings
Workings
Workings
IFP Value
MPTP 5% value split per PWO
Adj Event Pd4
indexation element
indexation element pro rata over live
MPTP 5% value split per PWO
transfer to AIF
transfer to Golden milestone
indexed
10,293
AIF transfer Value
Daily Interest
AIF Value
Fund value + transferred in year
BoE + 1%
with interest
2020/21
Achieved in year
@ end of period
PWO 3
20%
10,293
0
0%
-
PWO 5
30%
5,146
0
0%
10,293
19
104
149
10,460
0
5,146
9
52
75
5,230
0
0
10,460
10,293
116
10,408
8,309
62
8,371
104
10,293
10,293
0%
-
MPTP 5% value split per PWO
Adj Event Pd4
indexation element
indexation element pro rata over live
MPTP 5% value split per PWO
transfer to AIF
transfer to Golden milestone
indexed
10,293
8,309
75
75
10,293
8,309
0
AIF transfer Value
Daily Interest
AIF Value
Fund value + transferred in year
BoE + 1%
with interest
10,408
156
10,565
0%
-
15,439
0
51,463
0
MPTP 5%
51,463
51,463
51,463
75
522
522
52,060
18,601
0
33,458
51,463
75
522
5,230
15,439
28
157
224
15,691
0
2,077
17,768
0
0
0
52,060
0
0
0
18,601
178
18,779
52,060
85
374
374
52,519
5,295
0
28,622
52,060
85
374
52,519
50%
Pd9
Workings
Workings
Workings
Workings
Workings
Workings
Workings
IFP Value
PWO Total
0%
-
10,293
19
104
75
10,386
8,309
-2,077
0
0%
-
2021/22
Achieved in year
@ end of period
PWO 4
10%
2.0%
1.50%
0%
-
52,060
52,238
0%
5,230
14
37
68
5,312
0
0
10,460
28
75
102
10,591
5,295
-5,295
0
5,312
17,768
43
112
204
18,014
0
5,295
23,310
8,371
126
8,497
5,295
20
5,315
0
0
0
0
24,075
302
24,376
52,519
216
216
52,735
0
0
28,838
0
216
24,376
366
24,742
52,735
0%
-
0%
-
51,538
0%
-
52,145
52,519
52,998
0%
-
Workings
Workings
Workings
Workings
Workings
Workings
IFP Value
MPTP 5% value split per PWO
indexation element
indexation element pro rata over live
MPTP 5% value split per PWO
transfer to AIF
transfer to Golden milestone
indexed
10,293
43
8,309
43
5,295
43
5,312
22
54
5,366
0
10,293
8,309
5,295
0
0
0
5,366
23,310
65
162
23,472
0
0
23,472
AIF transfer Value
Daily Interest
AIF Value
Fund value + transferred in year
BoE + 1%
with interest
10,565
158
10,723
8,497
127
8,624
5,315
80
5,395
0
0
0
0
52,519
52,735
216
53,580
OFFICIAL SENSITIVE - COMMERCIAL
STR/PPP/PROJ/000xx/1
Page 14 of 15
OFFICIAL SENSITIVE - COMMERCIAL
STR/PPP/PROJ/000xx/1
Page 15 of 15
Appendix 5 – Example showing AIF daily interest calculation
Example of daily interest calculation for the AIF:
AIF Daily Interest Calculation
Daily Interest
AIF
Daily Interest
Opening
Balance
25 January 2022
26 January 2022
27 January 2022
28 January 2022
29 January 2022
30 January 2022
31 January 2022
01 February 2022
02 February 2022
03 February 2022
04 February 2022
05 February 2022
06 February 2022
07 February 2022
08 February 2022
09 February 2022
10 February 2022
11 February 2022
£0.00
£0.00
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
Transfers In
£7,724,966.39
Transfers Out Closing Balance
£0.00
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
£7,724,966.39
CummulativeInterest Rates:
£
£0.00
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
£213.76
BoE Base 0.1% + 1% 1.0100%
£0.00
£213.76
£427.52
£641.28
£855.04
£1,068.80
£1,282.56
£1,496.32
£1,710.08
£1,923.84
£2,137.60
£2,351.36
£2,565.12
£2,778.88
£2,992.64
£3,206.40
£3,420.16
£3,633.92
OFFICIAL SENSITIVE - COMMERCIAL
STR/PPP/PROJ/000xx/1
Page 15 of 15