... Public Risk for Private Gain? 29 13 The risk buffer Risk transfer affects the cost of private finance because, unlike public finance, private finance is priced in the market according to the risks ... 2004, p Public Risk for Private Gain? likelihood of the Agency paying for construction cost increases, the use of private finance can bring no benefits to offset the higher cost of finance. ”12 The ... Typically, 90% of finance for PFI schemes is low risk and the remaining 10% is higher risk The overall cost of finance is the sum of these costs of finance There are two main types of senior debt,...