3.8 The risk profiles of PFI projects vary considerably during the construction phase making it difficult to refinance a number of projects on a pooled basis. Once in operation, many differences fall away making possible an approach that coordinates the right to refinance by a number of public authorities. This aligns with the interest of lenders in selling loans to free up reserve capital and then support new projects.
3.9 In March 2010, the House of Lords Select Committee on Economic Affairs, in its report Private Finance Projects and off-balance sheet debt8 called for further investigation of any impact on service delivery that may result from the sale of shares by the original private sector investors, known as secondary market sales (See Glossary). Treasury guidance currently permits such equity sales without the sharing of resulting gains with the public sector. The Treasury has yet to publish research on the contribution made by equity investment at various stages in the life of a public private partnership.
________________________________________________________________________________________
8 Published 17 March 2010 (HL Paper 63-I and 63-II).