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Over £400m health investment

Details of a multi-million pound package to fund new hospitals and health centres round the country were revealed by Deputy First Minister Nicola Sturgeon.

The main beneficiary is Royal Edinburgh Hospital Campus with a further £120 million to complete its redevelopment.

It is all part of a £409 million plan with investment to be secured through a £1 billion extension to the Non Profit Distributing (NPD) programme, which now extends through to 2019-20.

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

Community health projects will be delivered as Design, Build, Finance and Maintain (DBFM) projects via the hub initiative.
Other projects in the £409 million package include:

  • £90 million to develop Aberdeen Women’s Hospital
  • £20 million for the new Aberdeen Cancer Centre
  • £65 million East Lothian Community Hospital
  • £20 million community health projects in Highland including Skye, Lochalsh, south west Ross-shire and in Badenoch and Strathspey
  • £19 million for primary care in NHS Greater Glasgow and Clyde
  • £19 million primary care projects in Grampian including Newmachar, Balmedie Blackburn and Elsick

The NPD model has been developed by the Scottish Futures Trust (SFT) which has been set up by the government to support infrastructure investment in Scotland.

Ms Sturgeon said:

“These health projects will provide state-of-the-art facilities to care for thousands of patients across Scotland.
This £409 million investment will deliver the highest quality of health and social care services. This government’s vision is to deliver world-leading safe, effective and person-centred healthcare.

Today’s announcement demonstrates that, despite the massive cuts to Scotland’s capital budget from Westminster, the Scottish Government will continue to deliver substantial investment in the infrastructure of the NHS through use of the innovative NPD model and the Hub programme.

Infrastructure investment is also fundamental to delivering sustainable economic growth. It supports our construction industry and helps attract business activity to our communities.

That is why we recently announced, as part of the draft budget, a £1 billion extension to the NPD pipeline extention to 2019-20.”