Following the announcement of the outcome of the distribution of "level playing field support" (as described in Finance Circulars 2/1998 and 13/1998) in November last year, the PFU and CoSLA 4Ps agreed that the 8 Local Authority project teams taking forward schools projects would gain real benefits from actively liaising with one another in a co-ordinated fashion.

To that end, a workshop was held on 3 March at Forthbank Leisure Stadium, Stirling and attended by representatives of all 8 project teams, amongst others.

Teams had a chance to share in the experiences of Falkirk, Glasgow, East Renfrewshire and Stirling Councils in relation to their schools PFI, with presentations from Rhona Geisler, Ian McDonald (and other members of the team), Alex Muir and Drew Grieve respectively. David Goldstone from the Treasury Taskforce spoke on the PFI process in general and was on hand to give advice as necessary.

A second , more informal, meeting of the ‘PFI Education Forum’ took place on 30 June in Auchterderran Centre Cardenden, Fife. Once again David Goldstone guested at the event and spoke about the new Treasury PFI Accounting Guidance and the Contract Standardisation Document.

I would like to take this opportunity to thank both Stirling and Fife Councils for hosting these events and all those who attended for making the meetings the success that they were.

We also take this opportunity to wish Drew a speedy recovery.

In January, Edinburgh Healthcare NHS Trust signed a deal for the provision 60 elderly care beds on the site of Southfield Hospital at Liberton.

On 1 March a contract was signed by Ayrshire and Arran Community Healthcare NHS Trust for the provision of the new £9m East Ayrshire Community Hospital which will be situated in Cumnock and will provide a range of inpatient, outpatient and day patient services.

On 31 March a contract was signed by Highland Primary Care NHS Trust for the provision of psychiatric and learninjg disability services to replace facilities at the Craig Dunain and Craig Phadrig Hospitals in Inverness which will provide acute, learning disabilities, rehabilitation and psychogeriatric beds within the overall development. The project will include the provision of 20 intensive psychiatric rehabilitation places in a community setting.

On 26 May a contract was signed by Argyll & Clyde Acute Hospitals NHS Trust for the £10m development of facilities at Larkfield to meet the needs of the elderly and young physically disabled in Inverclyde.

In June, South Glasgow University Hospitals NHS Trust concluded a deal with Datageneral and Meditech for the provision and operation of a Hospital Information Support System at Glasgow’s Southern General Hospital (£2.4m):

The following details were supplied by McGrigor Donald for 3 of the above projects:-

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The project was let by Edinburgh Healthcare NHS Trust (advised by

McGrigor Donald) and involves the design, construction and operation of a 60 bed facility for the care of frail, elderly and dementia sufferers. The project reached financial close in January 1999. A new facility is to replace the existing Southfield Hospital in Liberton, Edinburgh, built on the grounds of the existing hospital. The Project Agreement was entered into between the Trust and Ellen’s Glen House Limited, a special purpose company wholly owned by James Walker (Leith) Limited, which is to design and construct the facility and provide non-clinical services to operate the facility for a period of 30 years. The facilities management services such as catering, domestics, laundry, administration and hairdressing have been sub-contracted to Gardner Merchant Ltd. The project also involves the sale of the site to Ellen’s Glen House Ltd and the sale of the existing Southfield Hospital which is to be redeveloped into private flats.

This project was let by Ayrshire and Arran Community Healthcare NHS Trust. McGrigor Donald advised the Trust. Financial close was achieved on 1 March 1999. The special purpose vehicle Cumnock SPV Limited was advised by McClure Naismith. Senior lenders were the United Bank of Kuwait (advised by Dundas & Wilson). The community hospital was established to provide continuing care, day care and out-patient facilities together with a GP unit.

This project for Highland Hospitals involves Robertsons of Elgin Limited and the Bank of Scotland. A design, build, finance and operate project, it enables the creation of ‘Craig Phadrig’, a community mental health care hospital in Inverness. Work on the facility began in April 1999 and is expected to be complete by July 2000.

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The following projects are expected to reach contract signature soon:

• Dumfries & Galloway Acute & Maternity Hospitals NHS Trust:

• South Glasgow University Hospitals NHS Trust:

• Tayside Primary Care NHS Trust: