Wednesday, 4 March 2009

Its not just me thats confused about PFI

Seems there are a few people confused by the government's initiative to prop-up PFI projects by giving them loans:

http://news.bbc.co.uk/1/hi/uk_politics/7920522.stm

I still don't understand how lending a private firm money to complete a PFI project is any different than paying for it up front as you'd normally do. I nievely thought that PFI was a way to get schools and hospitals without having to pay up front and getting private money to finance it instead.

Ok, the government may charge interest on the loan, but after the company has taken profit out of the project, it will still be more expensive than just paying a contractor up front.

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