This paper presents financial statement analyses of Special Purpose Vehicles (SPVs) across multiple sectors of the UK Private Finance Initiative (PFI) programme.
Considering SPVs operating highways maintenance, prison and hospital contracts, observations of various business operation and financial concepts are provided in time elapsed relative to SPV incorporation date. The intention is investigate whether accounts can be used to observe the economic characteristics of varying types of PFI project companies.
Results are limited by the coverage of data over the population of PFI contracts, as well as the consistency of reporting of accounting concepts on many SPV statements. Conclusions highlight the variance of accounting practices across the range of companies. Further research is intended on improving the coverage of financial data on PFI SPVs, as well as incorporating the nuances of accounting practices for means of further insight into this novel procurement route to improve transparency on use of public funding.
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