Improving the Bankability of a PFI Financing Application

Abstract

Due to the current economic and financial crisis, it has become increasingly difficult for Private Finance Initiative (PFI) bidding consortiums in the U.K. to obtain debt capital from financial institutions. Based on interviews with experienced financial professionals in this research, 50 key factors in five positioning groups are identified in terms of their impact on the bankability of a PFI bidding consortium’s funding application. The analysis of follow-up survey results further ranks the significance of the 50 key factors, among which 27 factors are recognized as more important than others. During the development of funding applications, bidding consortiums can use the key factors identified to effectively improve the overall bankability of their proposals.