Public private partnership "funding for new infrastructure, such as schools and hospitals, does not provide taxpayers with good value for money," according to the Treasury Select Committee of the British House of Commons. The Committee found that the capital cost of even a low risk P3 project is over 8% – double the long-term cost of government borrowing. Higher borrowing costs since the credit crisis mean that PFI (as the British call P3s) is now an ‘extremely inefficient’ method of financing projects, according to the Committee. Analysis commissioned by the Committee suggests that paying off a PFI debt of £1bn may cost taxpayers the same as paying off a direct government debt of £1.7bn. The Committee also stated it has "not seen any convincing evidence that savings and efficiencies during the lifetime of PFI projects offset the significantly higher cost of finance." The business publication Health Investor adds that PFI schemes perform poorly in s
Notes from Leftwords -- Doug Allan