As i understand it
a company pays for eg a hospital and the govt effectivelly leases it for say
20 yrs
after the time what happens ?
also , dont tell me we lend the company the money in the first place or something daft like that ?
thanks
PFI Experts ?
Feb 26, 2005
2 Replies
20 yrs
Usually the deal is that it belongs to HMG.
But of course it will be shagged by then. So they'll be a new round of PFI bidding to refurb it and new contracts issued for another 20 years. This is what has happened to the Man Metro each time a new extension is built.
tim
Depends on the precise contractual terms but in most PFI contracts I'm aware of they'll revert to public ownership.
There may be some contractual right for the private company to continue operating the facility.
Rgds
__ Richard Buttrey Grappenhall, Cheshire, UK __________________________
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