Private Finance Initiative (PFI)

The Private Finance Initiative (PFI) is a funding method used by governments to finance public projects, such as schools and hospitals, by partnering with private companies. Under PFI, a private entity designs, builds, and maintains a facility while receiving payments from the government over time, often based on the quality of service it provides. This approach can help spread costs over many years and leverage private sector efficiency, but it has faced criticism for potentially leading to higher long-term costs and complex contracts. Overall, PFI aims to deliver public infrastructure without immediate government expenditure.