SLF at centre of Laidlaw inquiry

摘要

The initial report from the Laidlaw inquiry highlights a fundamental lack of transparency in the 1CWC refranchising process. In particular, bidders were unable to predict with any accuracy the likely size of any Subordinated Loan Facility associated with their offer. Even if bidders had been given access to the GDP Model which was used to assess the robustness of bids and determine the size of the SLF, it would not have helped because DfT 'adjusted' the original cost and revenue lines to reflect its view on the risk of each bid failing to meet these projections.