SFT has undertaken to carry out a review of operational PFI / PPP / NPD contracts, to assess whether there are value for money savings that can be realised.
SFT has written to 22 Scottish public bodies indicating that we should like to engage with them on this exercise. We have requested a copy of all the legal documents associated with such contracts, the financial model and the key contacts within each body to engage with regarding the review. We have reviewed a significant number of contracts, but are at an early stage in discussing the findings of this review directly with the public bodies. Following this, we anticipate an engagement taking place with private sector sponsors and / or FM contractors as appropriate.
By selecting public bodies that have signed a number of contracts, the 22 bodies provides coverage of 56 of the 85 contracts signed in Scotland (66%) and includes many of the older contracts signed in the late 1990s which will generally not have followed the standardised contracts that were developed later on and therefore may have fewer protections included for the public sector, but may also provide some opportunities for savings as well. The 22 bodies also give coverage of every key sector of PPP infrastructure and therefore should expose any issues that are restricted to a particular sector.