£1 billion regional fund for transport and infrastructure projects
Released 09 April 2008 | Released by Adrian Ient
An innovative regional infrastructure fund is to be explored by the East of England Development Agency (EEDA) which could be worth £1 billion and pay for the accelerated delivery of transport and other infrastructure projects in the East of England.
EEDA has commissioned a team of consultants, led by Colin Buchanan and Hewdon Consulting, to work up options for a regional infrastructure fund (RIF).
The region has ambitious growth plans which cannot be realised without capital investment in its infrastructure. However funds are often not available in time and a RIF can accelerate funding and plug this gap. The fund could provide upfront funding from the banks or government sources to pay for infrastructure such as transport schemes and the fund replenished from future incomes such as a levy on new developments. Other creative funding mechanisms will also be explored.
The projects supported by the RIF could include transport schemes, flood defence schemes, utilities as well as other smaller infrastructure schemes.
Steve Cox, EEDA's Executive Director of Strategy and Development, said:
"The regional infrastructure fund which EEDA is developing follows the recent Budget announcement in which the government asked regional development agencies to look at innovative funding mechanisms to pay for infrastructure. It will accelerate infrastructure delivery and support the region's ambitious growth plans vital to ensuring the region's businesses can stay competitive in a global marketplace.
"The billion pounds that could be raised from a regional infrastructure fund should accelerate delivery of prioritised schemes."
The consultants will prepare a strategic case for a RIF and identify preferred options. A business case will be delivered during the summer. EEDA will consult widely throughout the process with local authorities and businesses and other partners before pilots are launched next spring.
Steve added:
"Our Transport Economic Evidence Study, which will report in the summer, and the evidence-based Integrated Development Programmes or equivalents that many of our local authority partners are now developing with our support will help determine the key infrastructure priorities that could be enabled by the fund.
"However this cannot happen without the support of our local authority and business partners and EEDA is taking the lead in building up the critical mass which is needed in the region. This follows from our recent consultation on the regional economic strategy and corporate plan which showed that significant support for this type of innovative infrastructure funding. We will be consulting widely with partners on the preferred options and, in due course, on how we prioritise projects for funding. We aim to publish the business case in the summer."
Hugh Roberts, Planning and Urban Design Director at Colin Buchanan, said:
"Colin Buchanan is pleased to be leading the consortium advising EEDA on this innovative work to find a solution to the region's strategic infrastructure needs. We look forward to working with regional partners to develop a fund with mutually beneficial outcomes for the economy and quality of life in the East of England."
The team of consultants is led by Colin Buchanan and Hewdon Consulting working with Denton, Wilde & Sapte and PKF.
