In recent years a number of public authorities in Scotland have procured privately financed infrastructure projects using the "non-profit distributing" or "NPD" model. The NPD model was developed and introduced as an alternative to, and has since superseded, the traditional private finance initiative or "PFI" model in Scotland. It has been used in the education (schools) and health sectors and is currently being rolled-out in the transport sector.
The model has been fine-tuned since it was first introduced and so this explanatory note has been prepared in order to clarify and summarise the basic principles that underpin the NPD model (as it will be applied in future privately financed infrastructure projects) and differentiate it from the traditional PFI model.
This explanatory note has been prepared and issued by the Scottish Futures Trust on behalf of the Scottish Government. Any clarifications and queries should be directed to the Scottish Futures Trust at mailbox@scottishfuturestrust.org.uk