Private Finance Initiative

The private finance initiative (PFI) is a way of creating "public & private partnerships" (PPP) by funding public infrastructure projects with private capital. Methods of providing funds for major capital investments where private firms are contracted to completed, and manage public projects. Under a private finance initiative, the private company, instead of the government, handles the up-front costs. The project is then leased to the public, and the government authority makes annual payments to the private company.

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