The Scottish Government has published a draft 10-year infrastructure strategy and pipeline, outlining its intention to harness new models to leverage private finance.
A consultation document covering infrastructure planning, investment and delivery between 2027 and 2037 was announced alongside yesterday’s Scottish Budget for 2026/27.
The strategy, aimed at three key outcomes – the environment, economic growth and building sustainable places – is structured around three “enablers” – public assets, place-making and private investment.
On the latter, the strategy said: “The Scottish Government is also actively exploring a range of models to crowd-in private investment – including government guarantees, equity stakes, and other mechanisms – in a way that safeguards value for money and protects the public purse from undue risk.”
The Scottish Government will explore models including best practice from abroad, the document added.
In addition, government or public sector guarantees could be used to reduce risk for investors around large-scale infrastructure projects.
“Guarantees can lower borrowing costs and banks often offer lower interest rates, making the project more viable. Guarantees also reassure investors that government is committed to a project,” the document said.
“We are also seeking more co-investment from public and private pension funds into projects and businesses in Scotland, by working with the Scottish Local Government Pension Scheme and others.”
Elsewhere, the strategy said that pressures on public finances meant that public bodies should consider where a consolidation of their estate was “possible and desirable”.
It said: “There are a number of public assets that cannot be fully maintained with the current funding available and asset strategies are required to help set out a comprehensive position and potential approach to manage the challenges we are facing.”
Meanwhile, the accompanying infrastructure delivery pipeline covering the next four years sets out specific investments worth a total £11.1bn, plus additional plans for revenue-financed infrastructure programmes.
Pipeline highlights include £4.1bn of public investment in housing, matched by £800m of private investment, investment across the NHS estate, £1.2bn for rail and ferries, £700m in prisons and £300m in nature infrastructure.
One project – the continuation of dualling work on the A9 between Inverness and Perth – was allocated almost £200m in the Scottish Budget.
A new wave of community health centres costing £500m will be funded via the Mutual Investment Model, with 12 schemes included in the first tranche.
The Scottish approach mirrors similar moves by the UK Government, which last year launched its own 10-year infrastructure strategy and pipeline, along with proposals for a new public-private partnership model to fund community health centres.