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Posted by: John Brace | 7th August 2015

£millions for PFI fire stations was borrowed from French and German banks

£millions for PFI fire stations was borrowed from French and German banks

                                            

The three boxes on the left are the PFI fire stations contract

The three boxes on the left are the PFI fire stations contract

There are many people who know more about accountancy than I do. I look forward to reading their comments on this. Below are links to the funding documents, which is part of the Merseyside Fire and Rescue Authority PFI fire stations contract that I wrote about yesterday. I received a copy of the contract from Merseyside Fire and Rescue Service when I exercised a right under s.15 of the Audit Commission Act 1998 c.18 to inspect and receive copies of the contract.

I’ve left out 4.7 (Bank Account Mandates) as this contains details of sort codes and account numbers with specimen signatures for those accounts. It’s probably better that such information isn’t published!

I find these financial documents rather confusing to understand as they use a lot of jargon. To me it seems to be an agreement to borrow up to £50,436,936 between now and 2038 from two banks (Dexia Crédit Local (a Franco-Belgian bank) and Norddeutsche Landesbank Girozentrale (a German bank)). The banks then charge interest on the money borrowed.

If anyone can tell me what the interest rate is being charged by the banks for this money (based on the documents below), please leave a comment. I’ve tried reading these documents to figure it out but it seems to be made deliberately obscure (probably because it’s a variable rather than fixed amount).

4.1 Loan Facilities Agreement

4.2 Funders PA Direct Agreement

4.3 Construction Direct Agreement

4.4 FM Direct Agreement

4.6 Account Mandate Agreement

4.8 STID

4.9 Noteholder Subscription Agreement

4.10 ProjCo Loan Note Instrument

4.11.1 Dexia ISDA

4.11.2 Nord LB ISDA

4.12 Agency Fee Letter

4.13 Arrangement Fee Letter

4.14 Equity Guarantee

4.15 Intermediate Loan Note Instrument

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Responses

  1. Hi John ref my comments yesterday not only will the costs for the PFI contract be astronomical but as the authority is borrowing from European banks there is a long term risk over rates of exchange to be taken into consideration which will involve even more expense to the council tax payer.
    In the past PFI contracts have been assigned & sold on to investors again & again therefore the on costs again will fall to the ratepayer, it beggars belief that these councillors & officers know what they are getting into so nothing
    new there then.

    • Well technically it’s the contractor borrowing the money from the banks rather than the Merseyside Fire and Rescue Authority itself.

      From what I can tell from the contract the money is borrowed at the LIBOR rate plus ~2% extra so the banks can make a profit.

      I’m not sure what interest rate the contractor is then charging Merseyside Fire and Rescue Service (without looking at another bit of the contract), but I suspect it would be at a higher interest rate than the rate at which it’s borrowing the money.

  2. Mr Brace, You are a Very Clever man, I had made connections in that direction myself, but went up to the Top, rather than looking in the Direction of the smaller European Banks first, you have obviously done your homework also. Now it is not the rate of the Loans, although that does have an immediate effect if they’re called in. It is the actual control that can be exerted on the Borrower that these and other Banks are interested in.

    Basically what you have is a ” Circuit ” in essence, that effectively ties in all the Parties from Wirral and Companies already mentioned. Not only do you have the circuit, you also have other connections to UK Banks and Major UK Companies, I will not go further than that at the moment.

  3. Mr Brace, before I was able to see your comment reference the LIBOR rate, I was trying to avoid mentioning the Major ongoing cases at the moment and further connections to further arms of MAJOR UK and EUROPEAN BANKS

  4. G’day John

    Don’t panic it’s not Friday night drunken ramblings I can’t even afford cheap cider now four years on the dole since I went to blew the whistle on Wirral “Funny” Bizz to adderley and basnett who did nothing apart from keep paying the criminals for eighteen months.

    Why?

    These two are not even worth capital A’s and B’s in their names they waste enough capital belonging to the Wirral Taxpayers.

    I was reading MX in the local propaganda sheet…. I like his work

    MX says…1:31pm Fri 7 Aug 15
    Hang on isn’t Cllr Bill Davies on Magenta Living’s Board of Directors along with fellow Labour councillors Steve Foulkes and ,Stuart Whittingham and Conservative group leader Jeff Green?.So when Frank Field is having a go at Magenta Living perhaps he needs to question what these councillors have been up to and what they knew about the problem or are they just turning up for meetings and pocketing the expenses and just doing whatever the rest of the Board tells them?.

    There are 66 useless specimens at Wirral just sitting on committees and collecting their allowances.

    Well apart from “The Pretend Friend” who sleeps through most and “The Raving Loony” that thinks something is a scandal one minute then doesn’t know his arse from his conservative elbow.

    Then there is “The Fudgit and Risk It Committee that couldn’t pass bookkeeping 101 if they all sat the exam together.

    “Crabapple” the chair, the chair being more intelligent than the dumb arse that sits on it.

    “Clowncillor Doughnut” looks like the fat barstard that’s eaten all the Krispy Kremes.

    These are the kinds of people people that the likes of Adderley get to approve his ridiculous schemes that he will and cannot ever deliver like Kev and Stellas Stagnant wirral Waters and Big Jack’s worlds biggest public golf course.

    Ooroo

    James

    Have a great weekend and keep up the great work, you are legend for filming “Ankles” when he was Deputy Mayor.

    • Mr Griffiths, I am aware of various interests and interesting people having fingers in the Magenta Living pie and various schemes before that introduced by Foulkes, this is where he gets his Screaming Lord Such approach to Council Life. The kind of approach that these people are bigger than the Law. Comments such ” I will rip the head off one of the former Senior Agency Heads, he has a brother and a Sister, Foulkes will know who I mean and these chaps I think had a Hand in the Iceland Fiasco (Merseyside Pension Fund) Remember Stevie?

      • Iceland nearly went Bankrupt and had to be bailed out, history never changes it merely comes around or looks that way in a lot of cases. I wonder if one Major European Bank and an Insurance Partner (Cuckoo) had anything to do with the latest debacle?

  5. G’day John

    7.30 am on this lovely Saturday morning and I am back from my walk.

    I wonder who is waking up with who at Wirral this morning?

    It’s a great day to be a whistleblower.

    Thinking John about your “wee wee camera” ermm that’s what I call it after the film you took of the Deputy Mayor on that night of the full council meeting that was adjourned half way through.

    “Wee wee camera” because you really took the piss out of “Ankles” that night.

    I was also thinking John your next “wee wee camera” could be one of those that cyclists wear these days to film themselves getting killed.

    You could creep around…. not the properties they rent for the “Open” you naughty boy, around the “STAIRWAYS” of Wallasey Clownhall getting them on film chatting about evil evil stuff and out having a smoke.

    Although John on the down side with a “wee wee camera” on your noggin they might call you a dickhead.

    Ooroo

    James

    You are far from a dickhead John keep up the great work and keep on filmin.

  6. G’day John

    The lovely day just keeps on giving

    From the rubbish paper from over kev and Stella’s Stagnant Wirral Waters

    Marine Lake is “jewel in New Brighton’s crown”
    New Brighton Councillor Pat Hackett said: “The marine lake is vital to New Brighton and it was a big attraction during its heyday.

    “It is important that we look at the mechanisms and structures to ensure it is used for the best purpose possible.”

    I thought this fool’s jewel in New Brighton’s crown was that little community centre with no customers that he got Wirral “Funny” Bizz to do one, two or was it three rubbish business plans at £3,000.00 plus a pop by an unqualified person.

    Ask “Highbrow” he has the database.

    How much evidence do they need to see Wirral “Funny” Bizz got away to Portugal with about £2,000,000.00.

    When they do something John I will go away.

    Ooroo

    James

    This buffoon accosted “Highbrow” on the train coming home from chess John I don’t think he likes the fact “Highbrow” has the dirt on him.

    They have such fragile little egos at Wirral John because they know they have no business acumen between them.

    They just put up their hands when they are told too and put their hands out for their allowances for nothing.

    And of course they know both you and “Highbrows” are genii.

  7. G’day John

    I was going to do a car boot today because I have been on the dole for four years since I blew the whistle to adderley and basnett over Wirral “FUNNY” Bizz knocking off about £2,000,000.00 of Wirral Taxpayer monies.

    She started to offer me a job…. Then all they did was keep paying the criminals for eighteen months.

    Weather not being good I didn’t venture out so being desperate for dosh I wonder whether anyone would like to purchase the database that proves emphatically that Wirral “FUNNY” Bizz are criminals and the police don’t seem to care.

    So if you want to buy it please make offers on this site.

    I haven’t asked John or “Highbrow”, “Highbrow”, owning the said database but in true Wirral manner I am sure I can arrange a deal with both.

    We will give “The Pretend Friend Jones” first refusal as he does love “due process” as much as a sleep in the chamber and likes to keep his filthy filthy dishonest arse clean wit an audit trail.

    Ooroo

    James


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