3.27 In a small number of PFI deals there have been mechanisms for the public sector to receive some rebate if, at certain points in the contract period, investor returns are higher than a defined amount. In other projects, the public sector has taken a shareholding allowing it to share in any upsides, but also downsides, which may accrue to equity investors. Under a Scottish model, investors are only paid interest on a shareholder loan, and any surplus is rebated to the public sector. Separate contracts for construction and operations, each priced according to their risks, is a further alternative.
3.28 The Treasury is currently considering alternative approaches to the balance of risk and reward for equity investors as part of the Government's call for evidence on the reform of PFI launched in December 2011.