PFI credits are only allocated to Authorities for facilities which are funded using private finance. There may, of course, be other project uses for Prudential Borrowing lying outside the scope of the PFI contract itself, such as land acquisition, or front-end infrastructure.
Authorities should be aware that in the ordinary course of events, no public sector capital contributions should be made for facilities lying within the scope of a PFI contract, given the potential for such contributions to distort the intended risk transfer. Where the Authority proposes to make a capital contribution in the context of a PFI project, it should discuss this at an early stage with WIDP and HMT (see paragraph 3.9 of SoPC for further details on the subject of capital contributions which are generally limited to 10% of capital cost).