Question reference: S4W-09997
- Asked by: Jamie Hepburn, MSP for Cumbernauld and Kilsyth, Scottish National Party
- Date lodged: 2 October 2012
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Current status: Answered by Nicola Sturgeon on 29 October 2012
Question
To ask the Scottish Government what the cost of repayments would be over the lifetime of each PFI/PPP project initiated from 1999 to 2007 if the contracts had been procured under the non-profit distributing model.
Answer
As the rates applicable to any project reflect the market conditions when the actual contract is signed, it is not possible to assess how the costs of previous PFI projects would differ if those projects had been procured via the Non-Profit Distributing (NPD) model.
The NPD model is the Scottish Government’s preferred option for revenue financed projects as it creates a better balance between risk and reward to the private sector and avoids the kind of excessive returns and poor taxpayer value associated with past PFI projects.