Meeting of the Parliament 20 December 2023
Yes, I am happy to say more about it. As I said in my statement, the mutual investment model is one that has been developed and used by the Welsh Government. It is a form of public-private partnership that is similar in many respects to the non-profit-distributing contract, which was previously used in a number of major road projects, including some of those that Mr Swinney narrated.
The principal advantages that such a contract offers are that it provides additionality of investment through the use of private finance to deliver infrastructure projects and reduces the level of annual expenditure by spreading payments over a longer period. However, it represents a significant long-term financial commitment and requires a detailed consideration of market conditions, especially inflation and the cost of borrowing. That is why, in a prudent manner, we have built-in decision-making points in the programme, whereby we will consider how appropriate it is to move to a MIM, given the prevailing market conditions at the time.