what is pfi funding

Private Finance Initiative (PFI) is a procurement policy of the UK government aimed at creating "public-private partnerships" (PPPs) where private firms are contracted to complete and manage public projects. PFI is a way of financing public-sector projects through the private sector, which alleviates the government and taxpayers of raising capital for the projects. The PFI program offers researchers and innovators two funding track opportunities: Technology Translation and Research Partnerships. The private sector invests in public sector infrastructure and/or services according to a specification defined by the public sector. It is a sub-set of a broader procurement approach termed public-private partnership (PPP), with the main defining characteristic being the use of project finance (using private sector debt and equity, underwritten by the public) in order to deliver the public services. Prior to the financial crisis of 2007–2010, large PFI projects were funded through the sale of bonds and/or senior debt. Since the crisis, funding by senior debt has become more common. Smaller PFI projects – the majority by number – have typically always been funded directly by banks in the form of senior debt.