• In the late 1990s, the Scottish Office and councils explored the use of PFI as a possible means of financing, in response to the pressures for additional investment in the Public Sector. In particular, PR in Scotland's education sector was investigated for the purpose of supporting the procurement of council services, such as new and refurbished schools.

• In 1998, the Scottish Office provided support to 12 PFI Schools Projects. Falkirk Council reached commercial agreement for the first PR education project in Scotland on March 31,1998 with the consortium Class 98 Ltd. The project consists of the construction of five schools for the city of Falkirk to the value of approximately £71million. Other PFI Schools Projects now operating include Balfron High School Stirling, East Renfrewshire and the Glasglow Project 2002. The remaining first tranche of PFI Schools Projects have either been agreed upon or are in negotiation. Those projects include Aberdeenshire, West Lothian, Fife, Highland, Edinburgh, Midlothian, East Lothian, and Dumfries & Galloway. In 2001, a second tranche of funding for PFI schools deals were proposed and bids from local authorities invited by the Scottish Executive.

• An audit review of the PFI Schools Program reports that:

- Broadly speaking, the councils have managed the PR processeswell. This has largely been achieved by implementing strong project management and governance procedures.

- In many cases, formal project steering groups have been established to supervise the projects and ensure a strategic overview. To assist in the effective progression of the projects, councils have typically established a project team. This team, usually with a core membership of 5 or 6 key council staff and a full - time project manager, reports to the steering group and is responsible for the day-to-day responsibility of progressing each project.

- In addition to the standard reporting requirements, most of the PFI schools projects exhibit a high standard of regular written analysis and reporting between the project team and the steering group. This procedure reinforces effective project management in accordance with best practice.

- Project teams should, at the outset, review and determine the standard of internal reporting to be achieved. Maintaining good records of the development of the project and key decisions made is more likely to promote accountability and effective decision-making.

• Glasgow Council is now operating the Glasgow Schools Project 2002. The goal of this bundled PFI Schools Project is to build and refurbish 30 schools for Glasgow City Council at a capital value of £225 million. The project will undertake the refurbishment of 10 secondary schools, the refurbishment and extension of 8 secondary schools, the construction of 11 new secondary schools, a primary and nursery school. A key element of the Glasgow Schools Project is the provision of technology services for the secondary schools , including laptops, over 15,000 desktop classroom computers, 350 network servers and fully networked open learning system linked to Scottish Universities.

• The Glasgow Schools Project 2002 is the largest education PFI deal in the United kingdom, and one of the continent's most successful PFI cases. The audit review reports that:

- The construction phase of the project was on or ahead of schedule for most of the schools in the project. Within 14 months of the Private Party consortium assuming managerial responsibility for the project schools, 4 schools were completed and made available and a further 5 schools were Hearing completion.

- This success was largely a consequence of performance monitoring strategies implemented by Glasgow Council. The Council established teams to monitor and ascertain the satisfactory delivery of the project's contractual obligations.

- The monitoring teams also determined the basis for approving contract payments to the Private Party consortium.

- The monitoring teams reported that they were satisfied with the level of service provided and the positive relationship established with the Private Party consortium