Chapter BIM64005
Published date | 22 November 2013 |
Record Number | BIM64005 |
PFI introduced private sector expertise and finance into the design, building and maintenance of major public-sector infrastructure projects and the operation of some public services.
Under a PFI scheme the private sector assume much of the risk in:
- building and managing property, e.g. a hospital, and/or
- providing support services,
thereby enabling the public sector to concentrate resources on delivering their core activities, e.g. the provision of quality healthcare.
The public sector ‘purchaser’ has to demonstrate that the PFI contract offers value for money to the Exchequer, in effect that there has been a transfer of risk to the private sector ‘operator’. The intended result is an improvement in both the quality of public services and the nation’s infrastructure, at an affordable cost.
In a typical...
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