May 11, 2011
The PFI model has been under fire in the UK for the past 12 months. Its reputation took a fresh hit at the end of April 2011 when the National Accounts Office published a report suggesting that the UK look at alternative funding mechanisms for healthcare and other social infrastructure projects.
Since the UK is considered to be one of the pioneers of public private partnerships (PPP), and has advised numerous other governments on the adoption of PPPs, it is no surprise that investors and officials in other markets have been keeping tabs on the debate. However, the global reaction has been varied. While the UK‟s PFI woes have been calmly noted in developed markets such as Canada, but have made little impact on public discussion, more soul-searching is taking place in emerging markets that have adopted the model more recently
Safe Havens for PPPs
Events in the UK, it seems, have caused barely a ripple in Canada. “Has the PFI debate in Britain impacted on the discourse the Canadian market? The short answer is no. There is a strong drive for PPPs in Canada, and it‟s a model that has been tested at all levels of government,” says Brad Watson, Global Infrastructure Partner at KPMG Canada… Read more