4.2  Where private finance is used, what have been the typical sources of finance?

Domestic banks providing conventional debt funding have been the primary source of finance to date although the advent of larger projects (such as the first roads DBFO) has seen the introduction of bond finance. There is likely to be a move towards this given the number of projects in the health, water and roads sectors that have been identified in ISNI and which have estimated capital values well in excess of £100m. It has also been suggested that the European Investment Bank (EIB) may be interested in one of the first phases of acute hospital PPPs. Banks from further afield have also started to show an interest in this market but it remains to be seen whether a robust challenge to the traditional funding market will be made.