Private Finance Initiative: Difference between revisions

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[[Category:Legislation & Policy]] [[Category:Economics]]

A [[Private Finance Initiative]] ([[PFI]]) is a way of financing public sector projects through the private sector. PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects. Under a private finance initiative, the private company handles the up-front costs instead of the public sector<ref>[wikipedia:Private finance initiative]</ref>. The project is then leased to the public and the government authority makes annual payments to the private company. These contracts are typically given to construction firms and can last as long as 30 years or more.<ref> [https://www.investopedia.com/terms/p/privatefinanceinitiative.asp] </ref>

==Overview of PFI==

A ~~private finance initiative~~ (PFI) is a way of financing public sector projects through the private sector. PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects. Under a private finance initiative, the private company handles the up-front costs instead of the ~~government~~. The project is then leased to the public and the government authority makes annual payments to the private company. These contracts are typically given to construction firms and can last as long as 30 years or more.<ref> [https://www.investopedia.com/terms/p/privatefinanceinitiative.asp] </ref>

A [[Private Finance Initiative]] ([[PFI]]) is a way of financing public sector projects through the private sector. PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects. Under a private finance initiative, the private company handles the up-front costs instead of the public sector<ref>[wikipedia:Private finance initiative]</ref>. The project is then leased to the public and the government authority makes annual payments to the private company. These contracts are typically given to construction firms and can last as long as 30 years or more.<ref> [https://www.investopedia.com/terms/p/privatefinanceinitiative.asp] </ref>

In its desire to stimulate investment in waste infrastructure and underpin the diversion of [[BMW]] waste from [[Landfill]], the Government supported/[[Subsidy|subsidized]] a range of treatment technologies on a number of sites that were procured by [[Waste Disposal Authorities]] needing this infrastructure through a dedicated long term Private Finance Initiative (PFI). This arrangement has now ceased and several schemes which had their funding agreed later had it removed after [[DEFRA]] assessed <ref>[https://data.gov.uk/dataset/b99f22a0-e716-44bf-bff2-a12da2562e4f/waste-infrastructure-delivery-programme-widp-residual-waste-treatment-infrastructure-project-list-ipl [[DEFRA]] Waste Infrastructure Delivery Programme]</ref> that the [[BMW]] targets could be met with the infrastructure funded to date.

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| Cambridgeshire || [[Waterbeach]] || [[PFI]] || Operational<ref name="op">In original data site was listed as In Construction this has been changed to Operational.</ref> || 200 || [[MBT]] || [[Amey Cespa]] site with variable performance reported, planning being pursued for new [[EfW]] on the site

|-

| Cornwall || [[Cornwall ERC|St. Dennis]] || [[PFI]] || Operational || 240 || [[EfW]] || [[Suez]] site ([[Cornwall ~~Energy Recovery~~]]) part of an integrated contract with [[ Cornwall Council | Cornwall ]] to 2039

| Cornwall || [[Cornwall ERC|St. Dennis]] || [[PFI]] || Operational || 240 || [[EfW]] || [[Suez]] site ([[Cornwall ERC]]) part of an integrated contract with [[ Cornwall Council | Cornwall ]] to 2039

|-

| [[ELWA]] 1 || [[Frog Island]] || [[PFI]] || Operational || 180 || [[MBT]] || [[Renewi]] site servicing [[East London Waste Disposal Authority | ELWA]], recently reported financial difficulty

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| East Sussex || [[North Quay ERF (Newhaven)|Newhaven]] || [[PFI]] || Operational || 234 || [[EfW]] || Servicing [[East Sussex County Council]] and [[Brighton and Hove City Council]]

|-

| Essex || [[Courtauld Road]] || [[PFI]] || Operational<ref name="op" /> || 417 || [[MBT]] || Developed and operated by partners [[Urbaser Balfour Beatty]] servicing [[Essex County Council]] and [[Southend-on-Sea Borough Council | Southend]], ~~reported operational difficulties~~

| Essex || [[Courtauld Road]] || [[PFI]] || Operational<ref name="op" /> || 417 || [[MBT]] || Developed and operated by partners [[Urbaser Balfour Beatty]] servicing [[Essex County Council]] and [[Southend-on-Sea Borough Council | Southend]], ceased deliveries in June 2020<ref>https://www.letsrecycle.com/news/latest-news/judge-rules-essex-tovi-eco-park-dispute</ref>and to be demolished<ref>https://www.letsrecycle.com/news/essexs-tovi-eco-park-waste-facility-to-be-demolished/</ref>.

|-

| Greater Manchester || [[Longley Lane]] || [[PFI]] || Operational || 110 || [[MBT]] || [[Viridor]] [[Laing]] consortium [[PFI]] contract with [[Greater Manchester Combined Authority | GMCA]] terminated 2017, now [[Suez]] from June 2019 for 7 years

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 [[Category:Legislation & Policy]] [[Category:Economics]]
+A [[Private Finance Initiative]] ([[PFI]]) is a way of financing public sector projects through the private sector. PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects. Under a private finance initiative, the private company handles the up-front costs instead of the public sector<ref>[wikipedia:Private finance initiative]</ref>. The project is then leased to the public and the government authority makes annual payments to the private company. These contracts are typically given to construction firms and can last as long as 30 years or more.<ref> [https://www.investopedia.com/terms/p/privatefinanceinitiative.asp] </ref>
 ==Overview of PFI==
-A private finance initiative (PFI) is a way of financing public sector projects through the private sector. PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects. Under a private finance initiative, the private company handles the up-front costs instead of the government. The project is then leased to the public and the government authority makes annual payments to the private company. These contracts are typically given to construction firms and can last as long as 30 years or more.<ref> [https://www.investopedia.com/terms/p/privatefinanceinitiative.asp] </ref>
+A [[Private Finance Initiative]] ([[PFI]]) is a way of financing public sector projects through the private sector. PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects. Under a private finance initiative, the private company handles the up-front costs instead of the public sector<ref>[wikipedia:Private finance initiative]</ref>. The project is then leased to the public and the government authority makes annual payments to the private company. These contracts are typically given to construction firms and can last as long as 30 years or more.<ref> [https://www.investopedia.com/terms/p/privatefinanceinitiative.asp] </ref>
 In its desire to stimulate investment in waste infrastructure and underpin the diversion of [[BMW]] waste from [[Landfill]], the Government supported/[[Subsidy|subsidized]] a range of treatment technologies on a number of sites that were procured by [[Waste Disposal Authorities]] needing this infrastructure through a dedicated long term Private Finance Initiative (PFI). This arrangement has now ceased and several schemes which had their funding agreed later had it removed after [[DEFRA]] assessed <ref>[https://data.gov.uk/dataset/b99f22a0-e716-44bf-bff2-a12da2562e4f/waste-infrastructure-delivery-programme-widp-residual-waste-treatment-infrastructure-project-list-ipl [[DEFRA]] Waste Infrastructure Delivery Programme]</ref> that the [[BMW]] targets could be met with the infrastructure funded to date.
@@ Line 20: / Line 23: @@
 | Cambridgeshire || [[Waterbeach]] || [[PFI]] || Operational<ref name="op">In original data site was listed as In Construction this has been changed to Operational.</ref> || 200 || [[MBT]] || [[Amey Cespa]] site with variable performance reported, planning being pursued for new [[EfW]] on the site
 |-
-| Cornwall || [[Cornwall ERC|St. Dennis]] || [[PFI]] || Operational || 240 || [[EfW]] || [[Suez]] site ([[Cornwall Energy Recovery]]) part of an integrated contract with [[ Cornwall Council | Cornwall ]] to 2039
+| Cornwall || [[Cornwall ERC|St. Dennis]] || [[PFI]] || Operational || 240 || [[EfW]] || [[Suez]] site ([[Cornwall ERC]]) part of an integrated contract with [[ Cornwall Council | Cornwall ]] to 2039
 |-
 | [[ELWA]] 1 || [[Frog Island]] || [[PFI]] || Operational || 180 || [[MBT]] || [[Renewi]] site servicing [[East London Waste Disposal Authority | ELWA]], recently reported financial difficulty
@@ Line 28: / Line 31: @@
 | East Sussex || [[North Quay ERF (Newhaven)|Newhaven]] || [[PFI]] || Operational || 234 || [[EfW]] || Servicing [[East Sussex County Council]] and [[Brighton and Hove City Council]]
 |-
-| Essex || [[Courtauld Road]] || [[PFI]] || Operational<ref name="op" /> || 417 || [[MBT]] || Developed and operated by partners [[Urbaser Balfour Beatty]] servicing [[Essex County Council]] and [[Southend-on-Sea Borough Council | Southend]], reported operational difficulties
+| Essex || [[Courtauld Road]] || [[PFI]] || Operational<ref name="op" /> || 417 || [[MBT]] || Developed and operated by partners [[Urbaser Balfour Beatty]] servicing [[Essex County Council]] and [[Southend-on-Sea Borough Council | Southend]], ceased deliveries in June 2020<ref>https://www.letsrecycle.com/news/latest-news/judge-rules-essex-tovi-eco-park-dispute</ref>and to be demolished<ref>https://www.letsrecycle.com/news/essexs-tovi-eco-park-waste-facility-to-be-demolished/</ref>.
 |-
 | Greater Manchester || [[Longley Lane]] || [[PFI]] || Operational || 110 || [[MBT]] || [[Viridor]] [[Laing]] consortium [[PFI]] contract with [[Greater Manchester Combined Authority | GMCA]] terminated 2017, now [[Suez]] from June 2019 for 7 years