EU regs hold up eight Scottish PPP education and health schemes

Work on eight public-private partnership education and health schemes in Scotland is being held up by changes in EU regulations.

The Scottish Futures Trust (SFT) has been charged with implementing new EU regulations, which require many of its public-private partnership (PPP) projects to be reclassified from private to public projects.

SFT has been rewriting contracts for a number of schemes, many of which are being worked up under the Scottish version of PFI, known as NPD. There are eight projects where the process is running behind schedule, potentially meaning they will not reach financial close until the new financial year starting this April, potentially putting back their construction start dates.

The SFT told Building the eight projects are Newbattle High School in Midlothian, Kelso High School in the Scottish Borders, Baldragon Academy in Dundee, Anderson High School in Shetland, Forfar Academy in Angus, Elgin High School in Moray, Lothian Health Bundle and Inverclyde Continuing Care Project.

Speaking about the delays, Peter Reekie, SFT's deputy chief executive and director of investments, said: "We are working to ensure that there is minimal delay to eight schools and health projects, that had been expected to reach financial close this financial year. SFT is working with partners to deliver a robust pipeline of future NPD and hub projects worth a further £1.7bn."

The SFT said that delivery of all NPD and hub projects which are already signed and under construction - worth £1.45bn - will be unaffected by the contract changes. The £155m NPD-funded Royal Hospital for Sick Children, in Edinburgh, reached financial close on
13 Feb and the Dumfries and Galloway's new £203m NPD-funded hospital will proceed as planned to reach contractual close soon.