PUBLIC SECTOR FUNDING IN PPP PROJECTS

3.19 In PFI: meeting the investment challenge, the Government set out its willingness to look at proposals that reduce the costs associated with private finance, but which do not compromise the disciplines of value for money and risk transfer brought by private finance to the procurement process. Contracting authorities should consider alternative funding methods only where this does not impact on risk transfer to the private sector or otherwise undermine the benefits that private sector debt finance at risk brings to projects.

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