Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JSF
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Subscribe Now
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Structured Finance
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Subscribe Now
  • Log in
The Journal of Structured Finance

The Journal of Structured Finance

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JSF
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
Primary Article

Project Finance and the Private Finance Initiative (PFI)

Rifat Akbiyikli, David Eaton and Andrew Turner
The Journal of Structured Finance Summer 2006, 12 (2) 67-75; DOI: https://doi.org/10.3905/jsf.2006.644162
Rifat Akbiyikli
With the faculty of engineering, University of Sakarya, in Adapazari, Turkey. .
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: rakbiyikli@sakarya.edu.tr
David Eaton
A director at the centre for risk management research, University of Salford, in Salford, UK.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: d.eaton@salford.ac.uk
Andrew Turner
A researcher at the centre for risk management research, University of Salford, in Salford, UK.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: a.r.turner@salford.ac.uk
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Abstract

Private Finance is one method of financing large-scale, capital intensive projects, in which traditionally only the cash flows generated by the project serve as the source of loan repayment and only the project assets serve as collateral for a non-recourse loan. An important aspect of this form of project finance is that the risks are borne not only by the sponsors but are shared by different types of investors such as equity holders, debt providers, and quasi-equity investors. Therefore, because the risks are shared, the criterion of a project's suitability for financing is whether it is able to stand alone as a distinct legal and economic entity with project assets, project related contracts, and project cash flows separated from those of the sponsors. This form of project financing, since it relies on the security of cash flows, requires a detailed awareness, identification, assessment, and quantification of all the risks. Consequently, a comprehensive and heuristic risk management process is essential for the success of the project. The lenders and other providers of equity and debt play important roles in the implementation of the risk management plan and hence affect the likely overall project success. The structure of this financing and investment on a particular project enables all project stakeholders to take a long-term perspective on the project, thus permitting the various contractors and investors in the project to work together with a common financial interest in creating a whole-of-life, cost-effective project that achieves full client satisfaction and performance to requirements. This article is limited to an examination of the project finance issues in PFI Road Projects in the UK. It presents the conclusions from the detailed analysis of three major UK PFI Road Projects.

  • © 2006 Pageant Media Ltd

Don’t have access? Register today to begin unrestricted access to our database of research.

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Structured Finance
Vol. 12, Issue 2
Summer 2006
  • Table of Contents
  • Index by author
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Structured Finance.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Project Finance and the Private Finance Initiative (PFI)
(Your Name) has sent you a message from The Journal of Structured Finance
(Your Name) thought you would like to see the The Journal of Structured Finance web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Project Finance and the Private Finance Initiative (PFI)
Rifat Akbiyikli, David Eaton, Andrew Turner
The Journal of Structured Finance Jul 2006, 12 (2) 67-75; DOI: 10.3905/jsf.2006.644162

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Project Finance and the Private Finance Initiative (PFI)
Rifat Akbiyikli, David Eaton, Andrew Turner
The Journal of Structured Finance Jul 2006, 12 (2) 67-75; DOI: 10.3905/jsf.2006.644162
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
  • Info & Metrics
  • PDF

Similar Articles

Cited By...

  • Improving the Bankability of a PFI Financing Application
  • Google Scholar

More in this TOC Section

  • Life Settlements
  • Case Study on Quantifying the Impact of Political Risks on Demand and Pricing in a Power Project
  • Highlights from Total Securitization
Show more Primary Article
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2021 Pageant Media Ltd | All Rights Reserved | ISSN: 1551-9783 | E-ISSN: 2374-1325

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy