Privately financed infrastructure investment: The Non-Profit Distributing (NPD) and hub models
Caroline Gardner, Auditor General for Scotland, said: "The Scottish Government has accepted the costs of using these contracts to increase total infrastructure investment. But the impact on future budgets is significant, as is the overall amount of money that will be repaid.
"With the introduction of the Mutual Investment Model, the Scottish Government has an opportunity to be clearer about the additional costs of investment associated with using privately financed contracts for specific projects. This will enable better reporting of how the overall combination of project funding is being used to maximise the benefits of investment across the whole public sector."
Graham Sharp, Chair of the Accounts Commission said: "We've found that local councils have been left with limited options other than to construct new and replacement public buildings through private finance deals. The main consideration for councils has been the affordability of repayments, with little focus on the wider implications of using private finance.
"With a new mechanism for funding Scotland's schools infrastructure, local councils must be fully aware of the benefits and risks of funding the entire construction costs with a mix of capital grants, borrowing powers and other resources."
Privately financed infrastructure investment: THe Non-Profit Distributing (NPD) and hub models
Oral evidence session 20 February 2020
The Committee will take evidence from the Auditor General for Scotland and Audit Scotland.
Meeting papers for 20 February 2020