The Scottish government in UK has accepted the Scottish Futures Trust’s (SFT) recommendation to use a version of the Mutual Investment Model (MIM). SFT was asked to examine the view to adding to the range of infrastructure investment approaches to help secure the investment required for the National Infrastructure Mission. SFT has submitted the options appraisal recommending Scottish version of MIM as the best value-for-money option to deliver additionality over and above current capital and public borrowing sources of investment.

The recommended option includes characteristics like

• Competitive tender processes to attract value-for-money project finance
• Focus on wider community benefits and economic stimulus
• Strong project and programme governance and resourcing in place to deliver
• Project diligence and scrutiny on the design and whole-life-cost of the asset
• Use of standard form contracts, assurance processes and robust conditions for funding, benefiting from previous revenue-funded programmes, experience and lessons learned.

The MIM investment model includes the public sector as a co-investor and co-owner of up to 20% of each project delivery company.