£220 million for schools and health facilities

27 Jun 2014 03:56 PM

Investment in infrastructure.

£220 million of new investment in infrastructure will see new schools and hospitals built across Scotland, Finance Secretary John Swinney announced yesterday.

The projects will be delivered as part of a £1 billion extension of the non-profit distributing (NPD) programme.

An additional £100 million of financial support will be earmarked for the Schools for the Future programme to support local authorities in delivering new and refurbished school buildings.

A total of £120 million in NPD investment will develop a new maternity hospital and a new cancer centre as part of the Aberdeen Royal Infirmary Campus.

Mr Swinney also confirmed the provisional outturn on the 2013-14 budget, with over 99 per cent of the Scottish Government’s £28 billion cash budget invested during 2013-14, and resources planned to be carried over to support spending in 2014-15 contributing to a limited cash underspend of £145 million.

Full details of the infrastructure projects contained within the planned £1 billion extension to the programme will be announced in the autumn Draft Budget.

Speaking in Parliament after informing MSPs about the Scottish Government’s provisional financial outturn for 2013-14, Mr Swinney said:

“The Scottish Government is using every lever at our disposal to support the Scottish economy and to invest in our public services.

“As these figures demonstrate, thanks to our effective financial management, we have been able to mitigate the worst impacts of Westminster’s welfare reform, invest all of our capital resources and ensure that not a penny of Scotland’s budget is wasted.

“Today’s outturn figures demonstrate how we are maximising the impact of our Capital budget each year, in the face of the significant real terms reduction of 26 per cent that the Chancellor has made to our Capital budget over the current UK spending review period.

“This investment will build on the successes of the current NPD programmes, delivering colleges, schools, roads, hospitals and community health facilities across Scotland.

“It will provide the construction sector with the long term certainty of a future pipeline of work that will promote growth and help create jobs.”

Cabinet Secretary for Education and Lifelong Learning Michael Russell said:

“The Scottish Government is committed to delivering good quality, well designed, sustainable schools through the Schools for the Future programme. I’m delighted that we can announce a further £100 million investment in Scotland’s school infrastructure which is in addition to the £800 million we are currently investing.”

“Under this government, a total of 463 schools have been rebuilt or refurbished and I look forward to working with local authorities to identify potential school projects that will benefit from this new funding.”

Health Secretary Alex Neil said:

“This £120 million in NPD investment reflects the clear commitment of the Scottish Government to high quality care in high quality health facilities.

“Making sure families receive a good experience when having a baby in NHS maternity hospitals is a top priority. This funding will allow NHS Grampian to build a new maternity hospital. This will see expectant mothers from all across Aberdeen and the surrounding areas give birth in a better environment and benefit from new equipment, and state-of-the-art facilities.

“The investment will also bring about the creation of a new cancer centre at the hospital. I believe the creation of a dedicated cancer centre will ensure that care, treatment and support offered to people who are facing such a difficult diagnosis continues to meet and indeed exceed the standard we all expect.”

Background

NPD ensures that private sector returns are capped, that there is no dividend bearing equity, and any surplus is directed in favour of the public sector.

Other major projects in the NPD pipeline include

• M8 M73 M74 Motorway Improvements (£310 million - reached financial close on 20 February 2014 and is the largest NPD contract to be awarded so far. In construction.

• City of Glasgow College (£193 million) - reached financial close 30 August 2013 and in construction.

• Inverness College (£45 million) - reached financial close 29 May 2013 and in construction.

• Ayrshire College - Kilmarnock Campus (£48 million) - reached financial close on 4 June 2014 and construction is expected to start shortly.

• NHS Lothian Royal Hospital for Sick Children/Department of Clinical Neurosciences (£155 million) - preferred bidder appointed in March 2014 and expected to start construction October 2014.

• National Centre for the Scottish National Blood Transfusion Service projects (£36 million) - preferred bidder appointed in March 2014 and expected to start construction August 2014.

• NHS Ayrshire & Arran Acute Mental Health & North Ayrshire Community Hospital (£48 million) – preferred bidder appointed in February; and expected to start construction July 2014.

• AWPR/Balmedie-Tipperty road scheme (£472 million) - Procurement of the project is almost complete. The 58km road is expected to start construction before end of 2014 with completion in Spring 2018.

• NHS Dumfries & Galloway Royal Acute Services Redevelopment Project (c£203 million) - shortlisted bidders in September 2013 and expected to start construction in 2015.