1.1 Core Principles
The NPD model is defined by the broad core principles of:
Enhanced stakeholder involvement in the management of projects
No dividend bearing equity
Capped private sector returns
It is important to note that the NPD model is not a “not for profit” model. Contractors and lenders are
expected to earn a normal market rate of return as in any other form of privately-financed PPP deal.
Rather, the model aims to eliminate uncapped equity returns associated with the traditional PFI model
and limit these returns to a reasonable rate set in competition.
These core principles apply to the NPD model across all sectors (e.g. health, education, transport).
To the extent that there are any variances in precisely how these principles are implemented, these
will be indicated in relevant sector-specific guidance/documentation.
Where the NPD model is to be implemented in a sector for the first time it may need further
development to adapt to the specific risks and requirements (e.g. technology, regulation, stakeholder
interface) of that sector. Any such development must be done in consultation with the Scottish
Futures Trust.