From Longman Dictionary of Contemporary EnglishPrivate Finance InitiativeˌPrivate ˈFinance Iˌnitiative / $ ˌ...ˈ..ˌ.../ (abbreviation PFI) noun a method used by the UK government to pay for public projects such as new hospitals, prisons, roads, and schools without having to pay for them directly. The government makes an agreement with one or more private companies who raise the money and do the building work. They then rent the building or road back to the government. Some people have criticized the Private Finance Initiative because they think that this arrangement will cost more in the future than if the government pays for the work itself. → see also Public Private Partnership
