The Equator Principles – The Global Standard
The private finance initiative (PFI) model which developed primarily in the UK and Portuguese markets in the 1990s has evolved into the broader public private partnership (PPP) models. The main drivers for the PPP model have been typically centred on improving value for money and enabling public infrastructure projects to be funded where there are funding constraints in the public sector. Traditionally, PPP programmes tend to focus on infrastructure that has the greatest economic benefit and the least political resistance. In the UK the complex models for Local Improvement Finance Trusts (LIFTS) for healthcare and Local Education Partnerships (LEP) for education were developed to try and achieve this flexibility. In Scotland, PPP model has developed to deal with specific Scottish political requirements and that is the Non-Profit Distributing Organization (NPDO). Tax Incremental Finance (TIF) is a relatively new concept for funding infrastructure in the UK although it has been used effectively in the USA to fund community and redevelopment programmes.