4. Total cost differential over the term of the P3 contract

Total debt payments under P3 $1,373,383,640
Total debt payments with government rates $1,028,911,100
DIFFERENCE $344,472,540

5. Present value of difference in borrowing cost

In present value terms, the difference is over $175 million.  (That’s the difference in annual debt costs, discounted to present value at the government long-term borrowing rate of 5.56%).

In other words, in Brampton, it is costing us $175 million more to borrow $536 million through a P3 than it would to borrow the money at government borrowing rates.

The breakdown is as follows:

Debt portion – annual payment difference – $4,017,544
period – 25.8 years
PRESENT VALUE OF DIFFERENCE – $54,368,331

Equity portion – annual payment difference – $8,662,587
period – 27.8 years
PRESENT VALUE OF DIFFERENCE – $121,184,877

TOTAL PRESENT VALUE DIFFERENCE – $175,553,208

Source:  Brampton P3 documentation made available for inspection through court actions.