Debt financing method in which repayment of the principal is not time-dependant like typical bank loans, rather it is linked to the financial return of the return, thereby reducing overall business risk.
Private financing method for projects in which the state retains a minority equity participation in the business entity but relinquishes management to its private sector partners.
Financing of the construction of public facilities, such as schools, hospitals, penitentiaries, administrative service etc, by the private sector in return for the long-term lease of the facilities by the state. The scope of PFIs may be extended to include staffing and operating management of the facilities by the private investor.