Scotland's PFI boom means £1.3bn a year bill is in the post

New roads, hospitals and public buildings are being built now, but latest Treasury data shows government repayments will peak in 10 years' time

Travelling around Scotland, the country feels dynamic. Motorways are being extended, new schools built and modern hospitals are springing up. But these projects are also the largest source of new public sector debt in Scotland and the biggest financial headache for Scottish National party ministers.

The majority of these public building projects - roads, schools, community centres and hospitals - are being paid for through a new type of private financing organised by the Scottish Futures Trust (SFT), a body established by the former SNP first minister Alex Salmond and involving contracts typically lasting from 25 to 30 years.

Related: Scotland's debt mountain: Holyrood's borrowing could hit 50bn by 2020