HM Treasury

Public private partnerships

The Infrastructure Finance Unit (TIFU)

On 3 March 2009 the Chief Secretary to the Treasury, Yvette Cooper, announced Government action to ensure vital PFI infrastructure projects go forward as planned despite the current financial market conditions.

The Treasury will build a professional lending capability to lend to PFI projects that cannot raise sufficient debt finance on acceptable terms, lending alongside commercial lenders and the European Investment Bank. It will also, where necessary, provide the full amount of senior debt required by a project. Treasury lending is intended to be a temporary and reversible intervention.  The Treasury envisages selling the loans it makes prior to their maturity when favourable market conditions return.

As result of this announcement, the Treasury has established the Infrastructure Finance Unit (TIFU), headed by Andrew Rose, to consider applications for loans to PFI projects, negotiate the terms of any such loans and monitor and manage loans once made. TIFU will operate at arm’s length from procuring authorities and its staff will include a number of project finance professionals.

TIFU completed its first loan facility on 8 April 2009, providing a £120 million loan for the Greater Manchester Waste Disposal Authority’s PFI project alongside the European Investment Bank and a syndicate of commercial banks.

The letter below provides guidance on the implementation of the statement made on 3 March 2009 by the Chief Secretary to the Treasury

The letter providing guidance on the Infrastructure Finance Unit and the Written Ministerial Statement are available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.

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Phone number 020 7270 5531

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