SFT is carrying out a review of operational PFI / PPP / NPD contracts to assess whether there are value for money savings that can be realised. The table below breaks down the 87 projects by sector and the cumulative unitary charge payable.
Box 1 - Summary Of Scottish PPP Contracts
Sector | No. Of Projects | Annual Unitary Charge |
Schools | 38 | £435m |
Health | 27 | £206m |
Waste & Waste Water | 12 | £151m |
Transport | 4 | £64m |
Other | 6 | £56m |
Total | 87 | £912m |
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 and have had initial meetings with 9 of these bodies. See Annex A for a list of these bodies.
By selecting public bodies that have signed a number of contracts, the 22 bodies provides coverage of 56 of the 87 contracts signed in Scotland (64%) and includes many of the older contracts signed in the late 1990s which will generally not have followed the standardized 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.