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Circuit of Wales delivers revised funding plan

Circuit of Wales developers have submitted loan applications of up to £90m from two local councils as part of its revised funding plan.
Circuit of Wales developers have submitted loan applications of up to £90m from two local councils as part of its revised funding application to build the track in Ebbw Vale.

The developers running the Circuit of Wales project have submitted loans to Blaenau Gwent and Monmouthshire council in its altered funding plan after it had its request to underwrite the entire project rejected by Welsh Assembly ministers in April.

The latest proposal would see the Welsh Assembly underwrite around half of the estimated £375m costs of the build, something ministers were open to in the first proposal, and the government is expected to make a decision by the end of this week.

Peter Fox, Monmouthshire council leader, told BBC News the local councils have not yet agreed to the loans and have given their views on the revised plan to the Welsh Assembly who will make the decision.

"With regards to the £90m local authority borrowing we need to bear in mind that this is what Circuit of Wales has put forward as part of its revised proposal,” Fox said on BBC News. “It is not something that local authorities have agreed or backed.

"Local authorities have simply offered their views on the proposal to Welsh Government who in turn have taken their own advice ahead of an announcement on Wednesday."

Welsh Economy Secretary Ken Skates is expected to announce a decision as early as Wednesday 13th July on the latest plan.

The initial finance plan set out by the Circuit of Wales organisers was rejected by the government due to the 'unacceptable risk' being asked to underwrite the entire project on the basis of external legal advice.

The Circuit of Wales project is targeting the creation of between 4,000-6,000 new jobs over the next ten years through commercial developments, planned business relocations and motorsport-related opportunities.

The project is backed by insurance giants Aviva who will fund the building and development of the land in Ebbw Vale.

The venture secured a five-year deal with Dorna which began last year and had originally hoped to move the event to Ebbw Vale in 2017 but after interruptions in confirming financial backing MotoGP has been delayed by 12 months, with the Welsh circuit expected to take over hosting duties in 2018.

Silverstone will host this year's British MotoGP and is likely to be called upon for the 2017 race but this is yet to be confirmed by Dorna.

Tagged as: Circuit of Wales

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July 12, 2016 4:45 PM

psychicwarrior: to anyone who knows a lot more than i please: what is 'in it' for the public of Wales if [their] public money is used? Do the Welsh get discounted entry fee or something for their stake? I've never understood what the value is for public money being used to 'fund' private enterprise.
it's a total scam. the developer hires a firm that will write a report that says the public works project (in this case a racetrack) will create X amount of economic benefit to the area (bunch of BS #s). The politician then uses this report (paid for by the developer) to justify using taxpayer dollars for this sort of initiative. nobody wins except the developer who gets paid and the politician who gets some form of kickback (under-the-table-$).

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