“Given the decline of PFI, it is of the utmost importance to find a new way to finance British infrastructure,” said Jason Millett, Maces COO for his consulting field. It is true that the private sector should contribute, but we must be sure that the new model, regardless of what it is, promotes long-term sustainable growth and does not undermine a sector that already faces serious challenges in terms of margin and risk management. Ref www.constructionmanagermagazine.com/news/chancellor-launches-pfi-replacement-consultation/ In the Private Financing Initiative (PFI) model, the private sector, like the BOO model, builds, owns and operates a facility. However, the public sector (unlike users in a BOO model) acquires services through a long-term private sector agreement. In any event, PFI projects therefore assume direct financial obligations to the government. In addition, explicit and implied potential liabilities may also result from loan guarantees to lenders and the failure of a public or private body in the case of unsecured loans. Although it is an eye-catching term, what “value for money” means is not clear in practice and in technical details. A Scottish accountant called it “mumbo-jumbo technocratic.” [136]:Chapter 4A number of PFI projects cost much more than originally planned. [137] [138] The National Audit Office has accused the government`s PFI dogma of ruining a $10 billion Department of Defence project. The Future Strategic Tanker Aircraft project to develop a multi-level RAF tanker and passenger fleet has been delayed by more than 5 years, while in the meantime, old and unreliable aircraft continue to be used for air and air refueling and for transporting troops to and from Afghanistan. Edward Leigh, then chairman of the Conservatives of the Public Finance Committee, which oversees the NAO`s work, said: “By introducing an element of private financing into the agreement, the MoD has succeeded in turning what should have been a relatively simple supply into a bureaucratic nightmare.” The NAO criticized the MoD`s lack of a “robust assessment of alternative supply routes” because there was a “hypothesis” within the department that the aircraft should be made available by a PFI agreement to keep the figures off balance sheet, as “the pressure on financial accessibility and the dominant policy of using the PFI, whenever possible, exists.” [106] There may be separate agreements within the integrated procurement team: however, a 2011 report by the National Court of Auditors was much more critical, as the use of the PFI “increases the cost of public investment compared to what the state would have at its disposal when borrowing on its own behalf and “the financial price with an IDP is significantly higher.” [112] There will then be separate agreements between the client and the SPV (concession or project agreements).