The following Construction guidance note provides comprehensive and up to date legal information covering:
This Practice Note provides a broad introduction to the Private Finance Initiative (PFI). It looks at what PFI is, the structure of a typical PFI project and its key features. It also considers PFI’s successor, ‘PF2’.
In the 2018 Budget (delivered on 29 October 2018), it was announced that the government will no longer use PF2 on new projects (see News Analysis: Budget 2018—what does it mean for infrastructure and housebuilding?). However, existing PFI and PF2 projects will continue to run and, given the typical lifespan of such projects, this is likely to be for many years.
PFI is a method of procuring the design, build and operation of public services and public sector infrastructure projects such as hospitals, schools, leisure facilities, social housing, waste management, emergency services, defence, roads and highways, social care and prisons.
PFI was introduced in 1992 by the Conservative government and enthusiastically embraced by their Labour successors. It was seen as a way of taking public projects off the country's balance sheet and working with the private sector to supply public projects with significant up-front capital costs that would have unduly strained the public finances if procured under a more conventional model. Rather than the public sector making a single large capital payment the project is funded by private sector equity and debt funding
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234