Public Finance Initiative (PFI)

Public Finance Initiative (PFI) is a way for governments to fund public projects, like schools or hospitals, through private companies. Instead of using taxpayers’ money upfront, private firms design, build, and sometimes operate these facilities, then the government pays them back over time through regular payments. This approach allows public services to benefit from private sector expertise and investment, while spreading costs over many years. However, it also involves long-term commitments and risks shared between the government and private partners.