The report, by industry expert Paul Davies, sets out proposals to rebuild trust and develop a partnership approach for the future deployment of private finance for infrastructure projects in the UK. The approaches argued for – including pathways to establishing Trusted Infrastructure Companies – are relevant to sectors including roads, rail franchising and construction, nuclear, electricity storage and distribution, and would also be relevant at the local authority level and in health and accommodation sectors. The private and public sectors must work together to overhaul their relationship by developing long-term, more trusted partnerships.
The UK should endeavour to remain a member of the European Investment Bank after Brexit given the significance of the value added by EIB finance to the UK infrastructure market. The report's preparation included detailed discussions with a cross section of UK users of EIB finance. It proposes a number of arrangements which would allow the UK continued access to EIB finance; however, in the event that these options were not to prove possible in the negotiations, the report has identified a number of domestic alternatives.
Written by Paul Davies, Chair, Finance Template Working Group, November 2017
Britain’s infrastructure pipeline should be re-examined to see which projects could be accelerated or refinanced with long-term capital. The report recommends that to rescue the private finance initiative “future models need to adopt governance arrangements that build confidence that while privately owned, the company in question can be relied upon to deliver on its social objectives and invest on a long term sustainable basis” says the report.
This report prepared by Tim Pugh of BLP for The Infrastructure Forum looks at means of unlocking projects across a wide range of areas which have been developed so far and the possibilities for the future in the infrastructure sphere.