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Private Finance Initiative

Volume 692: debated on Wednesday 6 June 2007

asked Her Majesty's Government:

What are the advantages of purchasing via private finance initiative schemes as opposed to normal public expenditure financing. [HL3994]

PFI has a strong track record of delivering investment infrastructure that supports public services on time and on budget. The Government are committed to using PFI only when it offers value for money to do so. The value for money benefits of PFI flow from the long-term focus it brings on whole life costs, the private sector's risk management experience incentivised by having private finance at risk, and the certainty for public services it provides for specified outputs being delivered at the cost contracted for.