Title

PFI

How to prepare for a smooth, safe and compliant PFI handback

Emma Beynon, Alex Lawrence and Lorna Kenyon-Pain look at the issues around handback of Private Finance Initiative projects and set out the key steps for a smooth transition.

(c) Panumas Yanuthai / Shutterstock.com

Private Finance Initiative projects (PFIs), introduced in the 1990s, expedited public infrastructure delivery by using private investment, paid off over long term contracts by the public sector. It led to thousands of schools, hospitals, homes, roads, and waste and other facilities being developed and maintained. As of March 2025, there were around 527 PFI contracts in England still active.

But the clock is ticking. Over the next decade, many of these long-term contracts will expire, with 2036 set to be the peak year. This means authorities will soon be taking back responsibility for assets that have been under private management for 25-30 years. 

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