Across emerging markets, much needed economic growth is hampered by a shortage of roads, mass rapid transit systems, telecommunications, power plants, sanitation, medical facilities and other basic infrastructure, all of which are much needed to achieve sustainable development.

Facing budgetary constraints, many developing countries consider Public-Private Partnerships (PPPs) as a way to mobilize private sector resources, bridge their infrastructure gaps and improve services delivery.

The Eglinton Crosstown is a light rail transit line that will run across Eglinton Avenue in Toronto between Mount Dennis (Weston Road) and Kennedy Station. The 19-kilometre corridor will include a 10-kilometre underground portion between Keele Street and Laird Drive. The LRT will have 25 stations and stops, linking to
bus routes, three subway stations and various GO Transit lines. The LRT is a significant provincial investment in support of Metrolinx’s Regional Transportation Plan for the

The new maintenance facility provides maintenance, repair, and additional storage for GO Trains and support GO Transit's planned service expansions.    

To select the best procurement approach for the project, a value for money (VFM) assessment was completed by independent financial advisor, which compared the DBFOM P3 procurement to a traditional Design-Bid-Build (DBB) procurement.

The updated VFM Guide is intended to provide greater information and insight about IO’s use of best practices, as well as to provide further transparency about VFM and the AFP model for our clients and stakeholders. The process to refresh our VFM methodology involved:

The Government Technical Advisory Centre (GTAC) provides specialized analytical support to the National Treasury for the assessment of proposed large infrastructure investments. Project appraisals of megaprojects are undertaken to determine the likely economic and financial viability of the project, particularly where financial support is being requested from the fiscus.

This report is mainly addressed to:

• −  PPP policy-makers, for example those in PPP Units; and

• −  public sector PPP practitioners, such as procuring authorities.

  In countries with established PPP markets and a track record in VfM assessment, the information contained in this report may be useful when undertaking comparisons and reviewing their own VfM policies and guidance.

These documents provide the framework for the justification for using private finance, and this does not compensate for the economic case for the investment decision. 

The Green Book sets out a framework for the appraisal and evaluation of all policies, programmes and projects.

HM Treasury finance director letter - draft IFRS accounting standard for PFI

The FD letter introduces a discussion paper on accounting for PPP arrangements, including PFI contracts, under IFRS.

• FD letter (PDF 54.8KB)
• FRAB accounting paper (PDF 91.5KB)

Application note: interest and inflation risk

• Application note - interest-rate and inflation risks in PFI contracts (PDF 131KB)

This application note has been designed to help Authorities understand and evaluate cost effective strategies for managing interest rate and inflation risks in PPP transactions.