Malaysiakini: Melaka wants RM37 billion bridge to Indonesia

ould be funded by the Private Finance Initiative (PFI). There is reason to be cautious over that statement. The PFI is a controversial method of borrowing money, in which government projects are funded by private investors. The banks who fund PFI projects are repaid, including interests, from the money received from the government over a period of time. Therefore, one of the biggest setbacks of a PFI project is that it is in fact more expensive than a public financed project. The government would also see an increase in its spending liability in the coming years for paying out over PFI contracts.