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4. Weaknesses in present arrangements
4.1. The Scottish Government welcomes the involvement of the private sector in infrastructure investment. It recognises the benefit of partnership between the public and private sectors, the value of private sector know-how and the due diligence it provides through having private capital at risk as well as the additionality their investment brings on top of public sector investment. However, it does not support the use of the standard PFI model to achieve this.
4.2 The Government considers the costs of projects which use the standard PFI model to be expensive and views the returns which the private sector equity * participants can realise as excessive, especially those obtained during the contract period and which have not been factored into the initial procurement and value for money assessments.
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