Annex (continued)
FUNDING REQUIREMENT
AND FUNDING
COSTS IN
THE PRIVATE
SECTOR
9. If the private sector can indeed realise
these potential efficiencies under the PPP then, under this illustration,
they will significantly reduce the requirement for external funding
and in time allow LUL to have positive cashflow after paying for
the infrastructure. Table 7 illustrates this. The internally generated
cashflow from LUL's operations is the same here as in the public
sector case (Table 3), because the assumption is that there would
be no change to revenue or operating costs.
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