Public Private Partnerships and Private Finance Initiative (PPP/PFI)

PPP/PFI is a procurement method creating public-private partnerships, whereby funding for public infrastructure projects is provided by private capital through a concession agreement.

How it works

A private sector party agrees to finance, build and operate infrastructure projects (e.g. hospitals, schools, roads and prisons) and to provide long term lifecycle investment and facilities management such as cleaning and catering, in return for payments over the concession period (typically 25 years). Payment is only made if services are delivered according to the requirements of the concession agreement.

Risk Transfer

Through the concession agreement certain risks are transferred to private sector parties as they are better equipped to handle such risks. For instance, should construction costs overrun or there is a delay in the completion of the projects then these costs are borne by the contractors. In the same way, finance costs are borne by the finance providers and service delivery by the
service contractors.

We can provide a range of insurance advice and broking capabilities in all aspects of your PPP/PFI projects.