6.1 This chapter looks at the options for indexing payments made under a PPP contract throughout the lifetime of the contract.
6.2 The method of indexation which is agreed during negotiations should take into account the following aims for the public sector:
• it should not allow the private sector operator to directly pass through cost increases;
• it should not result in costs faced by a NHSScotland body rising faster than any increases in its funding from SGHD.
6.3 This section should be read in association with the Scottish Government Guide on Payment Mechanisms. Further HMT guidance is available on Interest Rate and Inflation Issues in PFI schemes, although this guidance is not mandatory in Scotland.