WITHIN THE SCOPE OF CRITICAL EVALUATIONS ON PUBLIC PRİVATE PARTNERSHIP MODEL; PFI MODEL

Abstract

Developed and developing countries are often performed the Public Private Partnership (PPP) Model, is used in the UK withdifferent interpretations as the Private Finance Initiative (PFI), and the Private Finance 2 (PF2) Model. In this study, those PFI Models were compared to the traditional PPP Model and discussed in terms of advantages and disadvantages. The study indicated that the using of PFI models are not adequate for risk allocation as the public is the guarantor position, especially in failure of the private partnership, and after the financial crisis. In this perspective, the UK’s experiences with the PFI models are exemplary after the 2008 Global Financial Crisis. However, the public sector are considered as advantages performing the PFI models in projects due to off the balance sheet and not placed in government debts which are detrimental effect on  the principle of fiscal transparency and the emergence of the state's real balance sheet during financial crisis and failure periods appears as a financial risk factor for public finance.Consequently, Turkey is the one of the most developing country using with PPP model in the last two decades, faced with the same problems in fiscal transparency and off the balance sheet.