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  • What Is PPP?

    PPP is an umbrella term used to describe a variety of arrangements whereby the private sector design, build, finance and operate a building and provide services to the public sector. In return the public sector organisation will pay the PPP a fee called the Annual Unitary Charge for the services provided. Probably the best known example of a PPP is the Private Finance Initiative (PFI).

    These links provide some more information on PPP:

    Midlothian Council submitted a contract notice on 11/12/2003.

    There are a number of other Scottish councils there are considering similar proposals for their schools:

    Scottish Executive Website - Click on Public Private Partnerships.

    Scottish Executive - PPP PDF Document

    There are a number of other Scottish councils there are considering similar proposals for their schools:

    Argyll and Bute Council - from their website

    Argyll and Bute Council named the Precept Consortium as provisional preferred bidding partner for its radical non-profit distributing Education PPP. The Precept proposal takes a “new for old” approach for up to 28 schools across Argyll and Bute, and is based on the creation of shared campuses.

    "However this is not a done deal. This is a potentially huge decision for the council, and one which will not be taken lightly. All aspects must be carefully scrutinised. Negotiations with Precept are still under way and the council is committed to a full consultation with parents, staff, pupils, local communities and other stakeholders."

    A number of authorities are pursuing the PFI model for their schools. However, despite the obvious benefits noted above, some concern has been expressed about PFI schemes.

    These concerns led Argyll and Bute Council to pioneer the development of a Non-Profit Distributing Organisation (NPDO) model. It is important to note that the NPDO is a type of PPP – it is a private sector entity and is operated on a commercial basis. In developing the NPDO model the council is seeking to capture all of the benefits of a traditional PFI – plus it is structured in such a way as to ensure that:

    • No profit is taken beyond the payments made to sub-contractors
    • Additional profit is recycled back to promote and provide additional educational facilities for the people of Argyll and Bute
    • It is at least as cost-effective as a PFI
    • The wider education community has the right to be represented on the board of directors of the Project Company
    • It has the potential to offer greater value for money to the Council

    Full details can be found on their website.

    Scottish Borders Council - from their website

    The Council has approved the Director of Education & Lifelong Learning’s report and recommendations on the Management Review of the school estate.

    The recommendations include moving towards a statutory consultation process for 11 schools, that may eventually lead to school closure and transferring pupils to other schools, or changing the age profile of one school. These proposals affect 11% of the Council's primary schools and 2% of the primary school population. These particular recommendations are not linked to PPP. Details on the recommendations and an outline of the reasons behind the proposals are attached.

    Speaking at the Council meeting, joint portfolio spokesperson, Councillor Val Robson said " we are not in the business of closing schools, our role is to open doors to opportunities and we think that the recommendations will in the long term offer better or more opportunities for the children involved."

    The Director of Education and Lifelong Learning added that it was important to remember this was just the start of a lengthy process and that everyone involved will have the chance to make their views known – and every view will be considered by Members before any decision is taken.

    Full details can be found on their website.

    Last Updated : 30 March 2005