Private Finance Initiative: Difference between revisions

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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>

In its desire to stimulate investment in waste infrastructure and underpin the diversion of [[BMW]] waste from [[Landfill]], the Government supported/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.

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.

Fast forward circa two decades later and some of these PFI projects are currently being considered by [[Waste Disposal Authorities]] for movement out of the PFI arrangement after consideration of the cost benefit of continuing with the contract. Indeed several have now removed themselves form the PFI model (i.e. Lancashire) or have had closed with major restructure (i.e. Sheffield and Greater Manchester).

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 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>
-In its desire to stimulate investment in waste infrastructure and underpin the diversion of [[BMW]] waste from [[Landfill]], the Government supported/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.
+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.
 Fast forward circa two decades later and some of these PFI projects are currently being considered by [[Waste Disposal Authorities]] for movement out of the PFI arrangement after consideration of the cost benefit of continuing with the contract. Indeed several have now removed themselves form the PFI model  (i.e. Lancashire) or have had closed with major restructure (i.e. Sheffield and Greater Manchester).