Nevin Associates

Michael Nevin

Mike is Director of Nevin Associates Ltd.  He graduated with a First Class Honours degree in Philosophy, Politics and Economics from Oxford University, and also gained an MA (Econ) in Economics and Econometrics from the University of Manchester.  He is a Fellow of the Chartered Association of Certified Accountants of England and Wales (FCCA). 

He worked as a Management Consultant with Deloitte & Touche / Touche Ross Management Consultants in Edinburgh and London (1990-98), and served a 14-month secondment with the Scottish Office’s Private Finance Unit in 1996/97, when he worked on establishing a bipartisan framework for the financing of Public / Private Partnerships in Scotland.  After completing the secondment, he set up Caledonian Economics Ltd, which under his leadership grew to become a major force in the Scottish consulting market.  In particular, he led the firm’s financial advice to more Scottish local authorities on their Schools Partnerships than any other financial adviser.  The scope of his advice included:
• preparation of Outline Business Cases at the outset of each procurement;
• the development of financial models to assess the likely costs and affordability of each project;
• financial input to the Invitation to Negotiate documents;
• the evaluation of bids received leading to a recommendation on the Preferred Bidder;�
• assessment of the Value for Money offered by each bid; and
• detailed advice throughout the negotiation process on the payment mechanism, financing terms and financial conditions within the Project Agreement leading to final contract signature.

The Councils for which he has acted include (in alphabetical order):
• Aberdeen City Council : this project achieved financial close for an investment programme of £80 million, procured through a Non-Profit Distributing Organisation (NPDO), in December 2007;
• Angus Council : this project achieved financial close for an investment programme of £60 million in October 2006;
• Argyll & Bute Council: Mike advised Argyll & Bute Council on the feasibility of options to use PPP/PFI to develop the schools estate in their area in 2001/02, and, working with the Council to prepare their Outline Business Case, developed the innovative concept of using a Non-Profit Making Organisation (NPDO), rather than a company run for profit, as the vehicle to mobilise private loan finance to achieve the schools regeneration programme.  This is now the preferred procurement model of The Scottish Government;
• Dumfries & Galloway Council: this project achieved financial close for an investment programme of £100 million in January 2008;
• East Ayrshire Council: Mike assisted East Ayrshire Council in the preparation of the Outline Business Case for the regeneration of its schools estate;
• East Dunbartonshire Council: Mike assisted East Dunbartonshire Council with the preparation of an Outline Business Case for the regeneration of its schools estate, which was submitted to The Scottish Executive in October 2002;
• Falkirk Council: Mike advised Falkirk Council on the preparation of an Outline Business Case for their schools’ partnership, which was submitted in December 2002, based on an NPDO structure;
• The Highland Council: Mike acted as Project Director on the Highland Council’s £150 million Schools Partnership, which achieved financial close in March 2006 on the basis of a project finance package underpinned by a £80 million bond issue and a £60 million loan from the European Investment Bank;
• Moray Council, in respect of their Schools Partnership;
• Orkney Council: Mike advised the Council on its Outline Business Case which successfully secured funding support from The Scottish Government in 2007, on the basis of a project implemented through an Arms Length Council Company (ALCCo);
• West Dunbartonshire Council.  Mike worked as the lead financial adviser to West Dunbartonshire Council on its Schools Partnership, which reached financial close in January 2008 for an investment programme of £120 million.

In addition to his work on Schools Partnerships, Mike also acted as the lead financial adviser on a number of major waste management partnerships.  Among the authorities for whom he has acted are (in alphabetical order) Argyll & Bute, The City of Edinburgh, Highland, Midlothian, Perth & Kinross, Scottish Borders and West Lothian.   He was the lead financial advisor to Dumfries & Galloway Council in procuring their successful integrated waste management partnership, which reached financial close in November 2004 with Shanks Waste Services (SWS) as the selected partner.  His services included the development of the Council’s financial model for the project, the development of the payment mechanism, assessment of the value for money offered by the three tenders submitted, and preparation of a Full Business Case to secure central government funding support towards the costs of the service payments.

He has also provided financial advice on a number of social housing partnerships, including:

• The East Lothian Social Housing Partnership. With Deloitte & Touche and social housing specialists Arneil Johnston, he advised East Lothian Council on the procurement of 500 new homes for affordable rent through a social housing partnership, delivered against a contractual Output Specification;

• Fife Council: Stock Transfer Assessment. With social housing specialists Arneil Johnston, he advised Fife Council on options for the transfer of all or part of their social housing stock to a private social housing landlord;

• North Ayrshire Social Housing Project: Irvine multi-storeys.  With social housing specialists Arneil Johnston, he developed a financial model and funding proposals for the modernisation of 272 social housing units in five multi-storey blocks in Irvine, North Ayrshire to leverage in private finance to realise a more substantial social housing investment programme than could have been achieved with public grant aid alone;

• Dumfries & Galloway Stock Transfer. With Arneil Johnston, he advised on the large scale voluntary stock transfer (LSVT) of the council housing stock to a newly created Dumfries & Galloway Housing partnership;

• Scottish Borders Council. With social housing specialists Arneil Johnston, he advised Scottish Borders Council on the large scale voluntary stock transfer (LSVT) of the Council housing stock to a new Scottish Borders Housing Association.  The LSVT proposal, which covers more than 7,000 housing units, gained a substantial positive vote from tenants in December 2001, and was the first LSVT completed in Scotland in 2002.

As Managing Director and 81% shareholder in Caledonian Economics until July 2007, he led the firm through a period of remarkable growth.  During five years between 2002 and 2007, the firm’s turnover and profitability more than tripled, and with this growth came an increasing responsibility for day-to-day practice management and financial control.  These administrative responsibilities left less time for the mission which had inspired him to set up Caledonian Economics in the first place – namely, to provide a bespoke, high-quality advisory service to his clients.  Accordingly, on July 31st 2007, he sold his interest in the firm to the other directors, and is now working again as an independent consultant through Nevin Associates Ltd, to provide strategic financial and economic advice to selected clients.