A FINAL decision on funding for a new £19 million Greenock health centre will be made within the next fortnight.

The Scottish Government has confirmed that talks are still ongoing about how infrastructure projects like the new medical facility are paid for.

Yesterday the Tele revealed how the proposed new Greenock health centre, which will replace the current crumbling building in Duncan Street, has been held up because of European Union red tape.

Changes to EU accounting rules mean the government’s usual funding method — Non-Profit Distributing (NPD) — is under the spotlight and it’s unclear how the centre will be paid for. The project is also being held up because officials have decided to examine other potential sites, including at the waterfront near to the Beacon, despite the former Wellington Academy plot being given the thumbs up by the health board and the local authority.

Inverclyde Council leader Stephen McCabe says there are ‘major concerns’ about the project and revealed that the new health centre could be delayed for three years or possibly longer.

But a Scottish Government spokeswoman says the development will still go ahead and that a final decision over funding is expected before the end of the month.

She said: “This project is being taken forward as part of the hub programme, using the Scottish Government’s NPD funding model.

“This programme is affected by recent changes to European Union accounting rules, which govern the classification of projects to the public or private sectors.

“Scottish Futures Trust has submitted proposals to the Office for National Statistics (ONS) on changes to the hub model, aimed at reinforcing a private sector classification.

“It is anticipated that they will respond by the end of November.

“NHS Greater Glasgow and Clyde has continued work to develop the project, so that it can be progressed as quickly as possible, and Scottish Futures Trust have been closely engaged with the board to discuss the implications for its projects.

“The Scottish Government is taking all appropriate action to protect vital capital investment in Scotland and to manage the implications of the latest guidance on classification on the NPD programme and the Scottish budget, and it remains committed to these projects.” The current NPD model of funding is a modern-day public-private partnership (PPP) agreement whereby a private company borrows money for major capital projects — which doesn’t count towards national debt — and carries out the design, construction and maintenance of the building.

The property is then paid for from the public purse over a period of time while it is in use.

Former Liberal Democrat MSP and Scottish environment minister Ross Finnie has been part of negotiations between the health board, council and other relevant bodies but says the future of the project is now out of their hands.

Mr Finnie, who is vice-chairman of the Inverclyde Joint Integration Board, said: “Stephen McCabe, myself and others expressed frustration that it’s not in our hands any more.

“This is now in the hands of a dispute between the EU, UK Government and Scottish Government about what is permissible and what is not permissible in terms of the financial model chosen for this project.” The wrangle is also having an impact on the development of a mental health facility at Inverclyde Royal to replace Ravenscraig Hospital.