Question reference: S4O-01487
- Asked by: Jamie Hepburn, MSP for Cumbernauld and Kilsyth, Scottish National Party
- Date lodged: 7 November 2012
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Current status: Answered by Nicola Sturgeon on 15 November 2012
Question
To ask the Scottish Government what benefits it expects to arise from the shift from the PFI/PPP to the non-profit distributing financing model.
Answer
The NPD model seeks to transfer risk and exert private sector discipline both during the construction phase of a project and throughout its lifetime, but without the excessive profits to the private sector and financing costs to the public sector associated with past PFI projects.
The key benefits of the NPD model are:
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returns to the private sector are capped;
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NPD does not contain dividend-bearing equity;
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surpluses from NPD projects can be directed in favour of the public sector; and
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enhanced stakeholder involvement in the management of projects.