Cost management on PFI projects
Privatized infrastructure projects have been around for at least two hundred years. In the eighteenth century, one of the first concessions to be granted was given to the Perrier brothers to provide drinking water to the city of Paris. The Trans-Siberian Railway and the Suez Canal were thought to have been the first Build-Own-Operate-and-Transfer (BOOT) projects in the modern world (Merna and Njiru, 2002). The great Victorian contractor Weetman Pearson not only built railways, power stations and ports in Britain, Mexico and Chile but also promoted the companies, raised the capital and ran the operations for a number of years.