Budget: Treasury details four projects that could be set to be underwritten through the UK Guarantee scheme
Treasury has detailed four schemes that could be under-written through the government’s UK Guarantees scheme in today’s Budget, but stopped short of confirming any new schemes to receive a guarantee.
Despite industry expectations that the chancellor would announce a raft of new projects to be handed a UK Guarantee today, Osborne only confirmed a guarantee of up to £75m to help raise finance for the partial conversion of the Drax coal-fired power.
But this scheme and the extension of the Northern Line to Battersea power station had already been confirmed by Treasury.
But the Budget documents did outline four further schemes that could be in line for UK Guarantees - these included:
- a 25 year guarantee of 100% of the debt for a £40m university accommodation project to help source long-dated institutional debt;
- guaranteeing the debt for a project-financed structured transaction for a gas storage facility
- guaranteeing the European Investment Bank lending to a UK company developing infrastructure in order to help the EIB bring more capacity to the UK; and
- a 12 year guarantee for 100% of the debt finance for to help a port upgrade its existing infrastructure to support the supply of new customer demand