By Richard Johnstone | 22 October 2013
A total of 40 projects are in line for support from the government’s £40bn UK Guarantees programme, the Chief Secretary to the Treasury Danny Alexander has revealed today.
Announcing the range of energy, road and rail projects that have passed the prequalification stage, Alexander said the government was ‘reaching out to help the private sector build Britain’s key infrastructure’.
UK Guarantees were launched last July to underwrite nationally significant infrastructure projects that may have stalled because of adverse credit conditions, so they could access private finance.
Over half of the 40 schemes that have prequalified are energy projects, including the proposed Hinkley Point C nuclear power station, which was given the go-ahead yesterday.
Other projects announced today include the construction of a biomass energy plant in Avonmouth by Helius Energy and a gas storage facility at Islandmagee in Northern Ireland. Two gas-fired power generation projects at Spalding in Lincolnshire and Gateway Energy Centre in Essex have also pre-qualified.
They join the London Underground Northern Line extension, the Mersey Gateway bridge project and the conversion of Drax power station from coal-fired power to biomass, which have all already passed the initial stage.
Alexander said further discussions, assessments and due diligence were now underway so final agreements could be reached. The guarantees would give private lenders confidence that the government would step in should providers fail, he added. The total value of the pre-approved projects is £33bn.
‘What we see today is the extent to which the government is reaching out to help the private sector build Britain’s key infrastructure,’ Alexander said.
‘Having passed the first hurdle these companies know the government is there to help if they need it. I hope today’s announcement will encourage even more businesses to consider how they can take advantage of a guarantee.’
