1.1  What is the PFI?

The PFI is a scheme under which private companies not only build new facilities, but also finance them and then rent them back to the Government. Before PFI, the private sector was frequently contracted to build hospitals and even to run all the non-clinical services such as catering, cleaning and portering with other (NHS) staff carrying out the clinical functions, namely treating patients. But the essence of PFI is that the private sector not only designs, builds and operates (DBO), but also finances (DBOF) the facilities - and all of this under long-term contracts, generally of at least 30 years or more.