Crossrail confirmed for UK Guarantees
“We need to make sure the Crossrail rolling stock is delivered on time,” said Alexander.
The trains are being procured under a PPP scheme but Alexander said progress is being delayed by the difficult financing conditions.
It is also believed that the Thames Tunnel project to vastly increase London’s sewer capacity will receive a government guarantee.
Meanwhile, at a separate event, Infrastructure UK chief executive Geoffrey Spence gave further clarity on the guarantees scheme.
For PFI and PPP deals, Spence confirmed that the Treasury will provide a maximum of 50% of co-lending in any project.
However, major public projects looking to use the guarantees to access private finance could see more than 50% of the project’s value being underwritten. That would require the project to come onto the government’s balance sheet, he added.
Spence also said the terms and conditions of the guarantees would be similar to those used by the European Investment Bank.