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PPP in Leisure
24 March - 25 March 2004
PPP in Leisure
PPP in leisure schemes are a means for a local authority to obtain the use of a capital asset as part of a service paid for by revenue. The key features of these schemes are that the private sector consortium assumes the risk and the public sector obtains value for money.

With over £3.2 billion of capital expenditure required to public sector leisure facilities in the UK, it is little wonder that local authorities are looking to a wide range of funding, procurement and delivery solutions. One of the hottest of these solutions are PPP’s, either through a ‘with revenue credits’ DETR approved PFI route or via a free standing leisure PPP in partnership with a consortia on the basis of a DBFO mechanism (design, build, finance and operate).

There is clearly significant demand for leisure and cultural PFI/PPP projects, as demonstrated by the DCMS allocation being more than 4 times oversubscribed. At least 30 authorities that are currently exploring the development of a leisure PFI/PPP project and private sector operators already account for about 20% of the market. Whilst a discretionary function, authorities consider leisure as a key service area and spend around £1 billion delivering these services.

It is the aim of this conference to offer an opportunity to gain a developed understanding of the complexity of the PPP/PFI process, the risks involved and the financial benefits offered. The conference will also cover an update on the roll out of the standardised PPP contract and the funding available for the public and private sector PPP’s and NPDO’s. Case study presentations demonstrate how cost effective PPP in leisure projects have been delivered and provide constructive evaluation and analysis for the improvement of future projects. This conference will create a forum for discussion and debate, creating an invaluable opportunity to assess how sport can assist and benefit regeneration.

Benefits of Attending
· Hear the Government’s policy regarding PPP in Leisure projects
· Identify the funding opportunities available for leisure projects
· Review the challenges faced by completed leisure projects
· Understand how to create a successful project and funding application
· Consider the far reaching regeneration benefits by the provision of leisure facilities
· Learn from the models for generating investment and revenue

A unique opportunity to learn from leading industry experts including:

  • Rt Hon Richard Carborn, MP Minister for Sport and Tourism, Department of Culture, Media and Sport (DCMS)
  • Roger Stratton-SAE Media Groupth, Head of Local Government Policy Team, Department of Culture, Media and Sport (DCMS)
  • Mark Downes, Head of Major Projects, Sport England
  • Richard Callicott, Chief Executive, UK Sport
  • Dr Stephen King, Head of Partnership, Commission for Architecture and the Built Environment
  • Mike Ellsmore, Project Director, Bexley Council
  • Paul McCormick, Education Officer, PFI & Premises Manager, Sheffield City Council
  • Julian Sims, Corporate Projects Officer, Breckland Council
  • Aileen Buckton, Assistant Director, Culture and Community Services, Education and Culture Directorate, London Borough of Lewisham
  • Peter Kirkham, Technical Director, DC Leisure Management
  • Michael Woolhouse, Head of Business Development, Leisure Connection
  • Nick Russell, Managing Director, PMP
  • Brigid Simmonds, Chief Executive, Business In Sport & Leisure (BISL)
  • Dr Fiona Gossart, President, Institute of Leisure Amenities Management (ILAM)

    “Whilst a discretionary function, authorities consider leisure as a key service area and spend around £1 billion delivering these services.”

  • Conference agenda

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    8:30

    Registration and Coffee

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    9:00

    Chairman's Opening Remarks

    Richard Callicott

    Richard Callicott, Chief Executive, UK Sport

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    9:10

    KEYNOTE ADDRESS: THE GOVERNMENT’S GAME PLAN

    Rt Hon Richard Carborn

    Rt Hon Richard Carborn, MP Minister for Sport and Tourism, Department of Culture, Media and Sport (DCMS)

  • An outline of the Government’s commitment to improve sport and levels of physical activity
  • Enhancing access to a fuller and cultural life for children and young people
  • Opening up institutions to a wider community to promote lifelong learning and social cohesion and inclusion
  • Addressing regeneration through leisure
  • Enhancing crime prevention
  • Promoting education and health through leisure schemes
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    9:40

    THE ALLOCATION OF PFI CREDITS BY THE DCMS

    Roger Stratton-Smith

    Roger Stratton-Smith, Head of Local Government Policy Team, Department of Culture, Media and Sport (DCMS)

  • How the Department of Culture, Media and Sport will act upon the Government’s objectives
  • DCMS and wider Government priorities for the allocation of PFI credits
  • Amount of credits available for allocation by DCMS to local authorities
  • Joined-up working with the OPDM, the DfES, the OGC and the Treasury
    DCMS’ 2004 guidance and criteria for local authority PFI projects
  • The two stage application for obtaining PFI credits
  • Relevant issues for the allocation of PFI credits: · Strategic context · Suitability · Deliverability · Affordability · Value for money · Council commitment and stakeholder support · Risk transfer · Market interest · Design quality
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    10:20

    THE NEED FOR INVESTMENT IN SPORT AND LEISURE

    Mark Downes

    Mark Downes, Head of Major Projects, Sport England

  • The need for improvements and investment in leisure and cultural services within authorities identified by the best value reviews
  • An evaluation of the success of the resulting search for private and voluntary sector partners
  • Reviewing regional and local sporting need
  • Widening community access to sport facilities
  • Increasing active participation in sport: focusing upon young people, dis-advantaged or under-represented groups
  • The strategy for sporting improvement
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    11:00

    Morning Coffee

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    11:20

    FUNDING FOR PPP’S AND NPDO’S

    Nick Russell

    Nick Russell, Managing Director, PMP

  • The prudential code – enabling local authorities to take control of investment
  • The allocation of PFI credits to the Department for Culture, Media and Sport (DCMS)
  • With revenue credits DETR PFI route
  • Freestanding leisure PPP in partnerships with a consortium on the basis of a DBFO (Design, Build, Finance, Operate)
  • 3rd party income
    Developing partnerships with the public sector, private sector and the non-profit distributing and voluntary sectors
  • Mainstream public sector funding
    Local Government financial and legal framework
    Different approaches to Public Private Partnerships (PPPs)
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    12:00

    NON-PROFIT DISTRIBUTING BODIES (NPDBS)

    John Layton

    John Layton, Director, PricewaterhouseCoopers (former Senior Executive of Strategic Partnering Taskforce, Office of the Deputy Prime Minister)

  • NPDBS as an approach to management and operation of community leisure facilities
  • The potential of community interest companies and social enterprises
  • The wider use of not for profit vehicles for leisure and cultural services
  • Financial impact and benefits of NPDBS: prudential code, trading, rate relief and VAT exemption
  • The benefits of NPDBS being free from local authority influence and financial controls
  • The potential of NPDBS as a vehicle to raise investment
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    12:40

    Networking Lunch

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    14:00

    CASE STUDY – PROVIDING A FULL DBFO SERVICE

    Michael Woolhouse

    Michael Woolhouse, Head of Business Development, Leisure Connection

  • An outline of the procurement process: working in partnership
  • A review of the challenges undertaken during the project
  • The challenges, the developed solutions and the outcomes
  • An assessment of the private sector’s project experiences
  • Delivering a successful PPP project: actionable intelligence on how to improve on future procurement process’
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    14:40

    DELIVERABILITY, AFFORDABILITY AND BANKABILITY

    Peter Kirkham

    Peter Kirkham, Technical Director, DC Leisure Management

  • Market overview
  • Deliverability · Managing the PPP/PFI process · Outline business case
  • Affordability · Risk and reward · Business plans · Programming
  • Bankability · Building effective partnerships · Realistic objectives and goals · Payment mechanisms · Project deliverability
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    15:20

    Afternoon Tea

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    15:40

    THE ROLE OF SPORT IN REGENERATION

    Aileen Buckton

    Aileen Buckton, Assistant Director, Culture and Community Services, Education and Culture Directorate, London Borough of Lewisham

  • The benefits to the local authority and community of obtaining the use of a capital asset as part of a service paid for from revenue
  • Gaining value for money from the facility
  • Tackling regeneration and social seclusion through sport
  • Reducing anti-social behaviour, building pride and confidence
  • Improving the community’s health
  • Assisting citizens to develop new skills
    Providing suitable opportunities and facilities at an affordable cost
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    16:20

    STADIUM DEVELOPMENT AND REGENERATION

    Jon Ladd

    Jon Ladd, Chief Executive, British Urban Regeneration Association (BURA)

  • The impact of sports led generation for the economy
  • The importance of the key factors to successful stadium based regeneration: · Design · Long-term strategic planning · Financial feasibility
  • Identifying why some stadiums have attained far reaching benefits while others have not reached their goals for regeneration
  • The issues and challenges in stadium based economic development
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    17:00

    Chairman's Closing Remarks and Close of Day One

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    8:30

    Re-registration and Coffee

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    9:00

    Chairman's Opening Remarks

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    9:10

    THE ROLE OF BUSINESS IN SPORT AND LEISURE IN DEVELOPING THE INDUSTRY

    Brigid Simmonds

    Brigid Simmonds, Chief Executive, Business In Sport & Leisure (BISL)

  • Government policy on sport and the private sector
  • The private sector's role in sport and leisure
  • From health, fitness and tennis clubs to operating local authority facilities
  • Relationships with the Government - the private sector and DCMS
  • Tax incentives to encourage more private sector investment
    Promotional campaign for an active nation

  • BISL's role in working with the private sector to help make good the estimated £3.2 billion investment required for local authority sport and leisure facilities
    The future strategy of BISL to achieve their goals and objectives
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    9:40

    CREATING ECONOMIC AND SOCIAL VALUE THROUGH GOOD DESIGN

    Dr Stephen King

    Dr Stephen King, Head of Partnership, Commission for Architecture and the Built Environment

  • The far reaching positive effects of a well designed and developed building
  • The new demands and drivers made of a build environment
  • Promoting value for money by reducing the lifetime costs of buildings and improving their performance
  • Defining design quality and delivering good design within PFI
  • Lessons learnt from CABE’s work with PFI projects
  • Future prospects for emerging forms of procurement
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    10:20

    CASE STUDY - BEXLEY

  • An overview of the project which provides over £30m of new investment through the procurement of three new leisure centres
  • An outline and breakdown of the funding model
  • Building and maintaining the relationship between the council, the PPP consortium, the funder and Sport England
  • How does the council ensure the delivery of affordable facilities whilst meeting its social objectives?
  • The strength of the model and the positive outcomes
  • Difficulties of the model and an assessment of how the model could be improved for future projects
  • David Hutton

    David Hutton, Partner, Bevan Ashford Solicitors

    Mike Ellsmore

    Mike Ellsmore, Project Director, Bexley Council

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    11:00

    Morning Coffee

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    11:20

    GENERATING DEMAND AND REVENUE

    Dr Fiona Gossart

    Dr Fiona Gossart, President, Institute of Leisure Amenities Management (ILAM)

  • Making better use of local authority assets, delivering increased revenue streams and efficiency savings
  • Increasing income streams though the development of better and more attractive sport, leisure, health and fitness facilities
  • Generating higher levels of usage and setting a realistic commercial rate: an evaluation of the experience learned from National Lottery funded leisure centres
  • Targeting concessions specifically to high priority groups
  • Evaluating the scope for new facilities to generate an operating surplus
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    12:00

    CASE STUDY - AMBER VALLEY, BRECKLAND, LEWISHAM AND PENWITH

    Susan Sonnex

    Susan Sonnex, Manager, PricewaterhouseCoopers (former Director of Environmental Services, Amber Valley Borough Council)

  • Increasing the size of procurement deals to stimulate the market
  • Attracting new bidders and funders into the market
  • The advantages of smaller authorities joining together to offer bundled projects
  • The advantages created by standardised contractual terms, output specifications and payment mechanisms of bundled projects
  • An evaluation of the benefits and weaknesses of the Amber Valley, Breckland, Lewisham and Penwith bundling projects
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    12:40

    Networking Lunch

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    14:00

    RISKS

    Christopher Causer

    Christopher Causer, Partner, Nicholson, Graham & Jones

  • Ensuring that the public sector gains value for money and the private sector consortium assumes appropriate risks
  • Reviewing whether there has been adequate transfer of risk to satisfy FRS5 and achieve off balance sheet treatment
  • Third party income – sharing mechanisms
  • Not for profit structures
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    14:40

    DEAL SIZE

    Julian Sims

    Julian Sims, Corporate Projects Officer, Breckland Council

  • Clarifying the overall PPP/PFI procurement mechanism for local authorities and the private sector
  • Making the process more accessible and attractive to the market place
  • Information exchange
  • Forging partnerships
  • Development of innovative ways of service delivery: don’t be constrained by tradition
  • Shortening the timescale of the procurement process
    Reducing the costs of the procurement process
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    15:20

    REGENERATION THROUGH EDUCATION AND SPORT

    Paul McCormick

    Paul McCormick, Education Officer, PFI & Premises Manager, Sheffield City Council

  • Sheffield context
  • A review of available funding sources
  • Developing a capital strategy to determine the most appropriate funding stream
  • Learning from the Sheffield experience: positive solutions and the challenges faced
  • The impact of the development upon the schools and the wider community
    Developing a cohesive strategy – issues to address
  • Infrastructure improvements and a catalyst for regeneration
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    16:00

    Chairman's Closing Remarks followed by Afternoon Tea. Close of Conference

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    WHAT IS CPD?

    CPD stands for Continuing Professional Development’. It is essentially a philosophy, which maintains that in order to be effective, learning should be organised and structured. The most common definition is:

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    GLOBAL CPD

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