A Study of PFI Adaptation Possibility to Social Capital Investment

Abstract

The forty percent of the mixed capital invested by public and private sector has suffered from accumulated heavy debt due to its operation, and in consequence, service supply of public sector is incompatible with economic efficiency managed by private enterprise. Additional need of social capital is demanded under curtailment of public budget, and PFI (Private Finance Initiative) scheme based on VFM (Value For Money) attracts attention to the project sponsors, contractors, financiers and/or organizers. This paper discusses with the substitution possibility between the third sector type and PFI scenario in terms of project evaluation.