Abstract:
The sustainable procurement is the process in which the sustainable needs are achieved by
balancing against the business needs while considering enhancing the values through entire
lifecycle of the product, waste reduction and recycling. Among the sustainable procurement
approaches, Private Finance Initiative (PFl) is one of them. which is bringing together the public
and private sectors to work together in partnerships to best utilize the assets and skills of both
sectors with the aim of creating better value for money for taxpayers while initiating the projects
with funds of private sector. However, the risk which is in adverse and uncertain by nature leads
to sustainability issues in PFI procurement. Project finance (PF) refers to situations where the
loan for the project is repaid from the future cash flows of the project. Project finance has been
used wide for financing infrastructure and public sector facilities like hospitals. power stations,
prisons. etc. Financial risk as the impact on the financial performance of any entity exposed to
risk. Therefore, there is a need to minimize thefinancial risk in PFl projects. Accordingly, the aim
of the study was to emphasis on overcoming sustainability issues on project financing through
better financial risk managementfor PFI projects in construction sector. Comprehensive literature
review was conducted to identify the tools and techniques. The study was developed to provide
step by step details in identifying and analyzing the key risks and mitigation procedures in
sustainable way at particular project phase. Then the gaps were identified and the opinions to
improve the sustainability were identified.
Keywords: Construction Industry; Private Finance Initiative; Risk Management; Sustainable
Procurements.
