Characteristics of pfi financing model

Pfi financing mode is characterized by single project subject, open project management mode, comprehensive agency system and flexible handling of project operation rights after the contract expires. Pfi, translated as "private initiative financing" in China, is a new infrastructure investment, construction and operation management mode that is gradually emerging in some western developed countries.

The overall agency system of pfi financing mode is different from BOT mode. As the main body of project development, BOT companies usually have their own development capabilities, while PFI companies usually do not have their own development capabilities. In the process of project development, various agency relationships are widely used.

Pfi financing is the optimization of BOT project financing, which means that the government departments put forward projects according to the social demand for infrastructure, and the private sector that has obtained the concession carries out the construction and operation of public infrastructure projects through bidding, and returns the operated projects to the government in a good state and without debt at the end of the concession period (usually about 30 years).

According to the different ways of fund recovery, Pfi can generally divide projects into three categories, namely, providing services to the public sector, self-reliance fees and joint ventures. The main project of pfi is usually a combination of domestic private enterprises, which embodies the power of private funds.