The financial commodification of public infrastructure: The growth of offshore PFI/PPP secondary market infrastructure funds, ESSU Research Report No. 8, Dexter Whitfield

New research reveals the rapid growth and power of offshore secondary market infrastructure funds โ€“ a ยฃ17.1bn (โ‚ฌ20.1bn) industry buying and selling equity in PFI/PPP project companies. The three-way profit gain โ€“ original SPV shareholders, secondary market fund sales and shareholder dividends of secondary market funds โ€“ means the total annual rate of return could be between 45%-60% โ€“ three to five times the rate of return in PFI/PPP final business cases. The five largest listed offshore infrastructure funds made a total profit of ยฃ1.8bn (โ‚ฌ2.1bn) in the five-period 2011-2015 but paid ZERO tax. Recommends termination of PFI/PPP programme, nationalisation of SPVs, increased public investment and many more policy changes.

Published on 4th October 2016. Last updated 27th May 2017.