PFI-Private Finance in Public Works

PFI is one of the novel approaches for the private finance in public works. The initiative aims on encouraging the private sector to undertake infrastructure projects and the provision of services on a project basis, rather than by the traditional means of procurement. PFI has been widely applied in a large number of fields in public works of government. PFI has become one of the government's main instruments for delivering higher quality and more effective public services. Two of the principal tenets of PFI is: the first is to secure value for money for the public sectors and the second to transfer the ongoing risk in the continued delivery of a service away from the public sector to the private sector.