PFI troubles hit Romania

Portugal is not the only European country where political instability has caused fallout for the PFI market. Romania’s nascent PFI market has been turned on its head with the news that the new government is to review £2.5bn in PFI contracts after it emerged the contracts were awarded by the previous administration without competitive tender.

Three separate agreements with Germany’s EADS, France’s Vinci and US company Bechtel will all be subject to review. With much of the UK’s refinancing market currently frozen in anticipation of a National Audit Office report and the coming general election, the situation is a reminder of how politically sensitive the PFI arena is.