Download 1 - NHSGGC

1. RISK MANAGEMENT STRATEGY
List of risks associated with the scheme:
o
There are no volume guarantees attached to this scheme. All risks regarding the uptake in the car
parks are borne by Impregilo.
o The access road off of Alexandra Parade requires redevelopment to cater for the Accident and
Emergency Unit and the opening of the multi-storey car park. Once work starts this is programmed to
take 6 months which is 6 months less than the build period for the multi-storey car park. Planning
consent for the improvements is pending but to minimise the risk of compensation having to be paid
by the Trust for a delay in opening the car park the Trust will not sign up to financial and legal close
until planning consent has been provided. In addition any compensation for delay in excess of what
the Trust receives through contractor insurances will be provided by extending the period of the
concession in excess of a normal 30 year period. The Trust will only face immediate financial
compensation claims if the delay period is over one year.
o Whilst the multi storey car park will provide a better service for patients and visitors, there will be an
increase in charges. As patients and visitors will pay the same charges as in the public car parks
surrounding the area, there is little risk of strong reaction from the public or visitors. However, as car
parking charges for the multi storey scheme will be considerably higher than the current charges paid
by staff, there is a risk of adverse publicity and of possible non use of the car park. However as
volume risk is borne by the contractor. this would become the contractor’s risk.
o The project is considered reasonably low risk for the SPV but should there be default in any way
regarding debt repayment to the senior debt providers then the Trust is required to satisfy that debt. If
the default is as a fault of the operators, Impregilo, then the Trust has recourse for full compensation
through a parent company guarantee from Impregilo SpA.
o The Trust has covered the risk relating to the state of the assets at handback by implementing into the
contract certain maintenance requirements and monitoring procedures throughout the life of the
project. On commencement of the 25th year of the operating period and on the commencement of
each year subsequent Impregilo are required to deposit £100,000 into a joint interest bearing account.
This account will be used to fund any repair and maintenance work required to maintain the car park
in properly maintained working order through to its handover to the Trust.