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An £80m fund to pump-prime major infrastructure projects in the South West was declared “open for business” recently by the South West of England Regional Development Agency (RDA).
This is the first fund of its kind in the country. The Regional Infrastructure Fund (RIF) will provide seed investment to ensure major infrastructure projects in the region are delivered in a timely manner to help unlock the region’s business potential. It is set to revolutionise regeneration projects in the South West of England.
An investment panel drawn from the public and private sectors will advise the RDA on all aspects of potential investments from the RIF.
Nick Buckland, board member of the RDA, Cornish business-man and chair of the RIF investment panel, said: “This fund will play a key role in developing a sustainable economy and helping to unblock obstacles that the private sector simply cannot do. Imagine you are planning for the creation of a new urban extension. What facilities, services and infrastructure do you need to support this new community, making it an attractive and sustainable place to live?
“A new school, very probably, additional health centres, urban drainage systems, open space, an improvement to a nearby motorway junction is a possibility. Delivering these key pieces of infrastructure early in the construction timetable will have wide-ranging benefits, not just for the new community.”
Derek Butler, senior adviser at Curzon Global Partners, a non-executive director of Develica Asia Pacific Management Limited and member of the RIF investment panel, said: “The RDA’s fund can bring about the timely delivery of these essential pieces of infrastructure. It is a method of ‘forward-funding’ financial contributions to infrastructure projects enabling the full funding package required to ensure they are in place earlier.
“Currently, delivery of an essential piece of infrastructure can be delayed, sometimes for years until every required financial contribution is in place - often after the bulk of the new homes are already occupied. The aim of RIF is to ensure that key infrastructure is delivered when it is needed.
“The beauty of the RIF is that the funds are recycled. It is planned to be available to help deliver infrastructure for over a decade; its investments are recouped through the planning process as development occurs. The SW RIF is being developed in a way that will also offer an opportunity to attract private finance into the delivery of infrastructure. If successful, this will mean that public sector resources can go further or be spent on other priorities,” Mr Butler said. |
