The PFI Refinancing Conundrum

The refinancing of PFI Projects continue to be a focus of concern in the PFI sector. On one hand, the benefits to both the public and private sector are clear; on the other, reports such as that released by the National Audit Office last April, highlight concerns with the current mechanisms that apply to refinancings (both specific contractual arrangements (in accordance with PUK/OGC guidance and otherwise) and the voluntary code that applies where there are no contractual arrangements to share refinancing benefit). Most recently, the Select Committee on Public Accounts published their findings in relation to the Norfolk and Norwich University Hospital refinancing which were summarised with the damning sentence: