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| BAH | Basic Allowance for Housing is an allotted amount of money, depending on rank, given to US military personnel to be used for housing.
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| DoD | US Department of Defense.
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| MHPI | Military Housing Privatization Initiative (or Residential Communities Initiative (RCI)) - the US military’s housing privatization program, created by the Defense Authorization Act of 1996. The program allows the transfer of the military’s interest in land and family housing assets to a private developer, who then leverages those assets - along with the future Basic Allowance for Housing revenues - to raise private sector capital. The funds raised are used to improve family housing and support on-going operations, resulting in improved quality of life for military personnel and their families.
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| Non recourse funding | Off balance sheet funding, held within special purpose vehicles, where the lender is only entitled to repayment from the profits of the project funded by the loan, not from other assets of the borrower. |
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| Bid costs | Costs associated with responding to requests for proposals and submitting tenders for new projects throughout the process to financial close.
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| BSF | Building Schools for the Future - UK Government’s largest ever school buildings investment program, aiming to rebuild or renew nearly every secondary school in England.
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| Committed equity | Refers to equity and loan stock contributions where Lend Lease has a future commitment to invest or has already invested.
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| Equity returns | Measure of the financial return that shareholders in a PFI / PPP consortium earn on their investments in a project.
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| Facilities Management (FM) | Soft FM refers to services such as catering, cleaning, laundry, security. Hard FM relates to long term maintenance of an asset.
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| Facilities Management revenue backlog | Revenue for facilities management is disclosed only for 10 years, although PFI contracts operate for a period of up to 40 years.
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| Financial close | The point at which the parties to a project procured under a public sector Private Finance Initiative (PFI) or Public Private Partnership (PPP) contract are irrevocably committed through the execution of unconditional contracts. It is normally characterised by the draw-down of funding for the project to begin construction.
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| LATS | Landfill Allowance Trading Scheme (2003). Under LATS, local authorities in the European Union (EU) face fines for exceeding landfill allowances.
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| LEP | Local Education Partnership, a body set up between Partnerships for Schools (the public entity responsible for delivering the UK Government’s BSF programme), the local authority commissioning new BSF schools and the private sector partner selected to build and manage them.
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| Lifecycle funds | The money required to meet the cost of replacing time expired asset components over the duration of a PFI / PPP contract.
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| MoD | UK Ministry of Defence.
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| NHS | UK National Health Service.
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| Operational | Projects that have completed the construction phase to become functioning assets.
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| Preferred bidder | The point in a PFI project when the public sector client formally notifies one bidder that it has been selected from the shortlist of providers, and intends to negotiate the contract with the preferred bidder on an exclusive basis. While this notification is a non contractual arrangement, it does however confirm the client’s intention to proceed to financial close.
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| Private Finance Initiative (PFI) | A form of PPP, PFI allows the public sector to contract with the private sector to provide quality services on a long-term basis, typically 25-30 years, so as to take advantage of private sector infrastructure delivery and service management skills, incentivised by having private finance at risk. The public sector typically pays for the project through a series of performance or throughput related payments, which cover service delivery and return on investment.
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| Project SLAM | Single Living Accommodation Modernisation - a UK Government military accommodation program for single personnel.
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| Public Private Partnership (PPP) | Public Private Partnerships are arrangements typified by joint working between the public and private sectors. In the broadest sense, PPP can cover all types of collaboration across the interface between the public and private sectors to deliver policies, services and infrastructure. Where delivery of public services involves private sector investment in infrastructure, the most common form of PPP is the Private Finance Initiative.
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| SPV | Special Purpose Vehicle - a company set up solely to manage the operational and financial interests of a PFI / PPP investment (also known as an SPC - Special Purpose Company, or SPE - Special Purpose Entity).
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