I don't know how EDI is organised but councils are increasingly trying to avoid PPP where possible. They generally do so by generating some capital (selling off some land for housing) coupled with "prudential borrowing".Jotbox wrote: Regarding PFI/PPP - my understanding is that this proposal doesn't strictly fall into that category, although the involvement of the Council's arms length development company EDI suggests to me that the proposal might fall somewhere around the fuzzy boundary between PPP and not PPP. Is there anybody out there who can outline the practical implications of EDI's involvement? Will the Council own/develop the schools, with EDI taking care of the housing, or will EDI be involved in developing the schools too?
"Prudential borrowing" is a relatively new regime whereby councils can borrow funds directly to invest in capital projects if they can demonstrate that the long term savings will outweigh their repayments. The loans are secured on future capital receipts and Local Authorities tend to be viewed as good creditors so can borrow at advantageous rates.
The combination can generate sufficient funds depending on the nature of the project.
