Under the new model, the selected private sector delivery partner will form a joint venture with the Development Bank of Wales to deliver £1.5bn worth of schools and colleges projects over the next decade.

The Welsh Government is using a new Mutual Investment Model plan to design and finance major capital projects due to a scarcity of capital funding.

MIM borrows heavily from the Non-Profit Distributing model used in Scotland and crucially has been judged as off-balance sheet.

Unlike historic PFI deals, the Welsh model allows the public sector to share in any profits with a 20% equity stake, excludes the provision of services such as cleaning, catering and low-level value maintenance work from the contract.

Planned schemes will see private partners build and maintain public assets. In return, the Welsh Government will pay a fee to the private partner, which will cover the cost of construction, maintenance and financing the project.

At the end of the contract, the asset will be transferred into public ownership.

The Welsh Government is hoping to shortlist three bidders and is to hold a bidders day on Thursday 18 July at Cardiff’s Voco St David’s Hotel Cardiff.

Further information is available from the etender Wales website.