CBI Scotland has warned that plans by the Scottish government to replace PFI/PPP must not delay new projects any further.

The government is expected to make a statement on Wednesday on the Scottish Futures Trust (SFT), its proposed replacement for public/private partnerships, used to fund public projects with private sector finance.

The SFT is expected to be structured as two companies — a public company providing advice to public bodies planning major infrastructure investment, and a private company to provide private investment for these projects. The scheme will be a non-profit distributing model and will cap private sector profits.

But business organisations say this may deter private companies from taking part and that a year’s delay before implementation could halt projects.

Kevin McKee, a member of law firm Shepherd and Wedderburn’s PFI team, has reportedly said that since PFI was scrapped, infrastructure investment in Scotland has stalled. “High-calibre bidders have turned their back on the Scottish market,” he said.

CBI Scotland’s director, Iain McMillan, said: “PFI and PPP have not been perfect but they have brought considerable benefits in terms of government transparency and financial accountability. The SFT may yet prove to be the way forward, but the case made to date has yet to convince. ”

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