We are all aware of the difficulties in relation to PPPs on major Dublin housing projects. However there is more to come. The British Treasury has announced the delay of some major PPPs (or to use their lingo Private Finance Initiatives).
I questioned the Department of Finance on this and have received the following answer. It clearly shows what is to come:
Answer from the Minister of Finance:
I have been advised by the National Development Finance Agency (NDFA) that the current global financial crisis is having an impact on the funding of all investments including Public Private Partnership (PPP) projects in all countries.
PPPs in Ireland, UK and other EU countries have experienced delays in getting banks to lend for long periods. However, it should be noted that a number of PPP deals, particularly smaller deals, are closing. The PPP model is still considered to be relatively robust and PPPs should remain an attractive class for investors. The NDFA has further advised that the momentum in PPPs, as well as other major investment mechanisms, should regain more traction as soon as the current credit crunch eases.