April 25, 2016 -
A VFM assessment is the comparison between the total project costs lifecycle costs (construction and operations) assuming delivery of the project as a traditional project (the public sector comparator or "PSC") and assuming delivery of the project as a P3 project. VFM assessments utilize assumptions about the future macro and local economy, probabilistic risk assessment, financial modelling and sensitivity analysis to perform this comparison and to develop an understanding of the potential range of VFM that the project may generate. The difference between the public sector comparator and the P3 project assessment is referred to as the value for money. If the costs for the P3 project are assessed to likely be lower than the public sector comparator, the P3 project is said to likely be able to deliver positive value for money. Financial close was achieved for the Project on February 11, 2016. This VFM assessment follows the financial close for the Project. The VFM assessment describes the various aspects of the project including the delivery options that were considered, the competitive selection process that was undertaken and the key terms of the Project Agreement, in addition to providing the final VFM assessment.