Abstract
The necessity of funds for investment in capital intensive public projects has pushed public agencies to search for new procurement alternatives. Thus, in the early 1980s, the idea of private finance initiative (PFI) as a method of financing large-scale, capital intensive projects emerged in Australia. The method is aimed at resolving the shortage of public funds for major investments through the funding capability of private entities. Later, the method was widely used by other governments with the same name or different names such as BOT (build-operate-transfer) in the countries having different legal structures. This paper describes the mechanism of PFI used by the UK Government and evaluates three case studies in achieving the essential characteristics of adequate risk transfer and value for money to the taxpayer. Santrauka Fondų poreikis investuoti į intensyvaus kapitalo viešuosius projektus pastūmėjo viešąsias įstaigas ieškoti naujų turto įsigijimo alternatyvų. Dar praeito amžiaus devintajame dešimtmetyje Australijoje atsirado būdas finansuoti didžiulius, daug kapitalo reikalaujančius projektus – privataus finansavimo iniciatyvos idėja. Šiuo metodu siekiama išspręsti viešųjų lėšų trūkumo problemą, daugeliu atvejų skiriant lėšas iš privačių organizacijų fondų. Vėliau minėtąjį metodą plačiai taikė kitų šalių su skirtingomis teisinėmis struktūromis vyriausybės. Straipsnyje paaiškinamas privataus finansavimo iniciatyvos mechanizmas, kurį taiko Jungtinės Karalystės vyriausybė ir įvertinami trijų atliktų tyrimų rezultatai, pateikiamos pagrindinės charakteristikos. Резюме Потребность в фондах для инвестирования капитала в общественные проекты привела к тому, что общественные учреждения вынуждены искать новые альтернативы для приобретения имущества. Еще в 80-е годы прошлого столетия в Австралии родилась идея, как финансировать глобальные проекты, требующие большого количества средств, – так называемая идея частного финансирования. Этот способ позволяет решить проблему нехватки общественных средств, при этом средства выделяются из фондов частных организаций. Позже упомянутый способ широко использовался правительствами разных стран с разными правовыми структурами. В статье объясняется механизм инициативы частного финансирования. Данный механизм используется правительством Великобритании, в нем сочетаются результаты трех проведенных исследований, характеристики которых представлены в статье.
Highlights
In the early 1980s, the idea of private nance initiative (PFI) that was later adopted by other governments with the same name or di erent names such as BOT or BOOT emerged in Australia. e method is aimed at resolving the shortage of public funds for major investments through the funding capability of private entities
Having achieved satisfactory assurance that the Government funds are available, lenders have to be assured that repayments are adequate. ese repayments are speci ed by the payment mechanism that de nes the nancial e ect of the allocation of risks, roles and responsibility between the granting authority and special purpose vehicle (SPV) which is the service provider
It is important that the payment mechanism re ects both the level of service required and the most cost-e ective transfer of risk to the private sector (Public Private Partnership Programme 2009). e payment mechanism should give the SPV an incentive to perform well and should provide the granting authority with remedies in the event that the SPV does not meet its obligations. e payment mechanism ensures that the objectives of the granting authority for the project are being delivered and should be linked to the outputs of the project set out in the output speci cation
Summary
By making no payments until services are provided in accordance with the Granting Authority’s Output Speci cation, the payment mechanism transfers signi cant design and construction risk to the SPV and provides signi cant incentives for the faster implementation of infrastructure projects. Ese repayments are speci ed by the payment mechanism that de nes the nancial e ect of the allocation of risks, roles and responsibility between the granting authority and special purpose vehicle (SPV) which is the service provider.
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