Rent-a-tanker
Rent-a-tanker
- 2006
- Economist 379(8473) 15-21 April 2006, 37-38(2) .
The MoDhas signed its largest ever PFI deal for the British army's establishment at Aldershot in Hampshire. The PFIcontract is a 35 year, 8 billion pound deal under which a private company will finance, build and maintain accommodation for 18 000 soldiers. But are PFI deals the best way to finance such ventures? It is argued that PFI deals work best when the contract is kept simple and is easily measured. However, because the risk of war is difficult to price, designing a military PFI that is straightforward looks set to be no easy task.
The MoDhas signed its largest ever PFI deal for the British army's establishment at Aldershot in Hampshire. The PFIcontract is a 35 year, 8 billion pound deal under which a private company will finance, build and maintain accommodation for 18 000 soldiers. But are PFI deals the best way to finance such ventures? It is argued that PFI deals work best when the contract is kept simple and is easily measured. However, because the risk of war is difficult to price, designing a military PFI that is straightforward looks set to be no easy task.