Scottish education minister Jack McConnell called the additional investment 'the most significant step yet' in providing for schools.
'Too many Scottish schools are in a poor state and need significant renovation,' he said.
Public/private partnerships had already helped several Scottish councils invest in school buildings, Mr McConnell added. These included in Glasgow, where all 29 secondary schools had been extended and refurbished, and Falkirk, which has five new schools under construction.
But COSLA believes the funding is too little. 'At least£1.3bn is needed to bring school buildings up to standard.,' said education deputy Helen Law.