Private Finance Initiative: Difference between revisions

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

==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. It is a form of [[Public Private Partnership]] ([[PPP]]) where the debt and equity is provided by the private sector to alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects (whereas a [[PPP]] has more flexibility in the structure of the contributions). Under a Private Finance Initiative, the private company also handles the up-front costs instead of the public sector. 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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 [[Category:Legislation & Policy]] [[Category:Economics]]
 ==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. It is a form of [[Public Private Partnership]] ([[PPP]]) where the debt and equity is provided by the private sector to alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects (whereas a [[PPP]] has more flexibility in the structure of the contributions). Under a Private Finance Initiative, the private company also handles the up-front costs instead of the public sector. 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.