Community Trust Partnership Overview

Using a Community Trust Partnership (CTP) model to deliver public sector and social projects using private sector institutional funding.

The parties to the CTP are the local authority or public body and the funders in equal partnership.

About the CTP

The CTP is a non-profit distribution company so that all surpluses are retained within the CTP and are used for the benefit of the assets within the CTP. In this way the local authority or public body can decide how the surpluses are spent. If the CTP has been set up to provide social or council housing then the surpluses can be set aside in a sinking fund to deal with maintenance and running costs so making the development self-funding. An alternative would be for the surpluses to be used as capital to provide additional housing or developing the scheme in the future.

Funding models and removing delivery risk

The funding for the CTP to build and deliver its’ projects is long term fixed funding and amortised over the long term which can be 15-40 years depending on the revenue stream and is either flat fixed or linked to CPI. At the end of the funding period the assets revert to the local authority or public body on a sale and lease back model. In practice what happens is that the control of CTP will be the sole control of the local authority or public body and the funder’s representatives resign.

Projects which are delivered by way of the CTP model fall outside of the OJEU process. This obviously has several advantages and benefits. The CTP will undertake to deliver the projects on a fixed price, turnkey basis. This gives certainty of cost and programme, if things overrun it is at the risk of the funders. During the design phase and in working up the specification for any projects the Local Authority will be full involved in the design and specification in conjunction with the project team. The project cost will be fixed once a specification has been agreed with the Local Authority partner.

This removes the procurement, development, construction and delivery risk from the Local Authority to the funder’s of the CTP. In addition, with CTP projects falling outside of the OJEU process this allows projects to be fast tracked and also saves considerable amounts of staff and executive time. This allows resources to be freed up to deal with other matters.

CTP Model Public Sector project delivery

The CTP model can be used to deliver all manner of public sector projects including:

  • Housing
    • Social
    • Council
    • Private Rented
  • Education
  • Healthcare
  • Town Centre Regeneration
    • Commercial
    • Retail
  • Leisure
    • Libraries
    • Leisure centres
  • Infrastructure
    • Transport
    • Social

This is not an exhaustive list and in general all public sector projects can be considered.