According to (Al-Khalil and Al-Ghafly, 1998), The PFI was the initial form of PPP. PFIs were a development of the government whereby the public and private sectors came together to fund, build and refurbish communal project. They comprised a consortium of several private companies which came together to form a Special Purpose Vehicle (SPV). After the formation of an SPV, the vehicle contracts with the public sector to build roads, hospitals, schools as per the specifications of the public sector.

PFI can be defined as outputs emanating from the private sector on a periodic basis, it includes maintains or building infrastructure. This is informed by taking advantage of the management skills encouraged by the private financial risk. Basically, PFIs are the purchase of services and not capital assets. They are lengthy. The private sector exposes itself to risk when securing finance for the construction of communal projects. The purchase of service does not mean that the private sector will own the national projects (Clough and Sears, 1994).

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