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Javier Carro explains the model PPP-PFI (Public Private Partnerships and Private Finance Initiative)

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The Private Finance Initiative (PFI) is a way of creating Public-Private Partnerships (PPPs) by funding public infrastructure projects with private capital. Largely used in Spain in different sectors such as Hospitals, Infrastructures, Utilities and others. The expert Javier Carro analyzes those models and its current impact on the economy.

Q: What do people mean when speaking about PPP/PFI?

Javier Carro: PPP / PFI is a form of procurement where the public sector procures services over a prescribed concession period (frequently 20 years or more) in a manner which leaves the risk of ownership and efficient operation of the project facilities with a private sector supplier.

Q: So it is a kind of privatization of public resources?

Javier Carro: Not exactly or at least it should not be the same. PPP / PFI is not the same as privatization as the public sector retains ultimate responsibility to the public for the service concerned. It is a modern form of public sector procurement designed to achieve improved value for money through a focus on whole life costing and increased risk transfer to the private sector.


Q: Where on earth did that model originate?

Javier Carro: PPP / PFI has become a well established concept adopted in many territories around the world. The government of Australia was pioneer in those models, and later on the United Kingdom also adopted PPP/PFI strategies. Spain has also utilized those models in several sectors such as Hospitals. University Hospital Puerta de Hierro in Madrid was one of the first projects applying PPP/PFI.

Q: What kind of sectors or industries benefit from PPP/PFI models?

Javier Carro: Its main application is related to sectors and industries such as Health, Education, Defense, Transport, Infrastructure, Waste, Energy and Utilities (Electricity, Gas, Water).

Analyst’s profile

Javier Carro has got a PhD in Law, and Bachelor’s Degree in Law and Business Administration. He also graduated in General Management (PDG) from IESE Business School, and postgraduates from prestigious international institutions such as London School of Economics (LSE), the University of Chicago, WhartonSchool (University of Pennsylvania) and Fordham University.

As professor, Javier Carro highlights by adding his dedication to teaching at IE-Instituto de Empresa or ESIC Business School, and by having published hundred of articles of analysis with national and specialized media.

He has lead both private and public important companies and institutions. As CEO and General Manager of one of top 5 University Hospitals in Spain, Puerta de Hierro Hospital, Javier Carro had the opportunity to lead and design one of the very first PPP/PFI projects in Madrid.

His expertise in Public Private Partnership and Private Finance Initiative (PPP-PFI), makes Javier Carro a contributor of great value to infrastructure companies for those kind of projects, largely applied in Hospitals development and management.

Javier Carro has an interesting Blog

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