The traditional PFI/PPP model gives little visibility for the public sector over the governance and management of the Project Company. The appointment of an independently nominated Public Interest Director (known on the early NPD projects as the "Independent Director") to the Project Company's board is a feature that is specific to the NPD model. The principal roles of the Public Interest Director are:
• Monitoring the Project Company's compliance with the core NPD principles
• Bringing an independent and broad view to the Project Company's board
• Monitoring conflict of interest situations and managing board decisions where there is a conflict of interest for the other directors
• Reviewing opportunities for, and instigating, refinancing (see below)
• Reviewing opportunities for, and instigating, opportunities for realising cost efficiencies and other improvements in the Project Company's performance (on the basis that in the absence of equity return there is a potential lack of incentive for the other directors to explore or promote these).
It is anticipated that SFT will nominate a Public Interest Director for each NPD project.
The Authority will be entitled to appoint an "Observer" to attend and participate (but not vote) at the Project Company's board meetings. The Observer role has been a feature of traditional PFI/PPP projects in Scotland to date and has been retained in the NPD model.