Project Finance News: PFI: a renaissance?
At an economic panel at the Construction News Summit, Geoffrey Spence, the former Chief Executive of Infrastructure UK, predicted an “increased interest in PFI”.
Noting that when the first round of major PFI schemes finished a few years ago and “during the past few years”, “the numbers did not support PFI” due to “fiscal consolidation and a lack of willingness and ability to enter into long-term arrangements”. Nevertheless, he now predicts that “given the constraint on capital budgets, we could see an increased interest in PFI”. Although the government has not formally decided to increase the number of PF2 schemes coming to market, he believes that the message of the last four years – encouraging investors to look at energy schemes rather than PFIs – could be about to change.