Monthly Archives: November 2002

PPP/PFI – strange acronyms

With BOOT (build own operate transfer), BOO (build own operate), BOT (build operate transfer), DBFO (design build finance operate), BTO (build transfer operate) and other permutations, we now have the more generic PFI (private finance initiative) and PPP (public private partnership) to contend with.

Behind this proliferation of acronyms there is a useful and interesting trend developing, mostly lead from the United Kingdom, which has caught the public eye.


PPPs – who bears the cost?

In the traditional model of infrastructure development; a model which gave our communities the foundations upon which the fabric of our society grew; our government bodies at various levels planned, designed, approved, financed, built, owned, operated and maintained all the essentials of life.  There appeared to be no limit to their purview – hospitals, fire services, telephone exchanges, postal services, roads, rail services, ports, airports, airlines, shipping lines, water, wastewater, electricity, police, defence and telecommunications, and all the bureaucracy needed to administer them, and to assure the public that the services they provided would continue to be available.

Why then consider private funding of public infrastructure projects?