Transcript Slide 1

The Growing Places and
Regional Infrastructure Funds
Versha Koria, Area Manager
South and South West HCA
2nd March 2012
Contents
 The Growing Places Fund
 HCA perspective on operating
revolving infrastructure funds
The Growing Places Fund
 £500m fund with three key aims:
– To generate short term
economic activity by
addressing immediate
infrastructure and site
constraints
– To allow LEPs to prioritise
local infrastructure needs to
deliver their economic
strategies
– To establish sustainable
revolving funds that will lever
in private investment
The Growing Places Fund
 Distributed to LEPs on formula basis:
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Cornwall and Isles of Scilly
Dorset
Gloucestershire
Heart of the South West
Swindon and Wiltshire
West of England
£4.2m
£6.4m
£5.6m
£14.2m
£6.2m
£11.3m
 LEPs encouraged to work in
partnerships to achieve critical mass
and economies of scale
 Nominated local authority to act as
fund holder
The Growing Places Fund
 Strong Government preference to
see sustainable revolving funds
established
 Encouragement to adopt good
practice established as part of
Regional Infrastructure Funds
 Majority of funding is capital
 Up to 2% of fund set aside to assist
management
HCA offer on Growing Places Fund
Where we are invited by LEPs, we can bring expertise and
experience to support the development of funds locally:
 Investment planning and prioritisation
 Challenging viability and deliverability
 Alignment with other investment (works well with
Community Infrastructure Levy and New Homes Bonus)
and land
 Expertise in funding models, including revolving funds and
links to existing fund structures
 Navigating ‘State Aid’ issues
 Acting as a ‘critical friend’
HCA management of three
Regional Infrastructure Funds
 We manage three RIFs established by Regional
Development Agencies:
– SWRIF (£36.6m)
– AWM (£9.6m)
– SEEDA (£15.1m)
 First round investments of the funds have unlocked
more than 24,000 homes and employment space,
accommodating more than 31,000 jobs
Revolving Infrastructure Funds concept
By Developer
Funds infrastructure
or By L. A.
£FUND
SW Regional Infrastructure Fund
 £36.6m fund launched in March 2008 by
SWRDA (£30m DfT,£6.6m SWRDA)
 RIF is not gap funding
 Forward funding, repayable as
development proceeds
 The RIF can:
- Lever in additional private sector resource
- Share risk between local authorities and
developers
 Five major investments to date will unlock
more than 15,000 homes and more than
700,000 sq m of employment space
Case study – Cranbrook new
community
 Largest individual growth area
designated within the South West
 A self-sufficient, low carbon new
community
 A population of 18,000+ in 6,550
homes by 2026 (30% affordable)
 11,000 jobs at Cranbrook, Exeter
Science Park and SkyPark
 Total investment £1.6bn+
 Public sector funding of £45m
including RIF, NAHP, Growth Point,
Community Infrastructure and Low
Carbon Infrastructure funding
Case Study – Cranbrook new
community
 Total RIF £12m - main local
route, primary school and
Clyst Honiton Bypass
 Partners are Hallam Land,
Persimmon and Taylor
Wimpey
 Repayment £8,000 per
completed residential unit
until total is repaid, with
minimum fixed payments from
2013 onwards
Case Study - Twin Sails Bridge,
Poole
 Key project enabled by second
harbour crossing
 Unlocks seven sites, a total of 26 ha
of brownfield land
 Delivers 2,000 homes, 63,500 sq m
of offices, retail, community and
leisure facilities
 Potential to create 2,000 jobs
 £700m in private sector investment
Case Study - Twin Sails Bridge,
Poole
 £9.96m RIF investment to Borough of
Poole
 The RIF secured the delivery of the Twin
Sails Bridge and provided certainty of
DfT funding for associated infrastructure,
which is delivered earlier
 £8.9m is to be repaid by 2016 from
developer contributions, including
Community Infrastructure Levy
 Fixed annual minimum payments of £1m
start in 2013/14
Key considerations
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What is planning status of development sites?
What economic benefits will be unlocked by investment?
How deliverable is the related development?
What is the realistic timescale for repayment?
Is there any risk of default? What security is offered?
What is the risk/reward profile?
How will the fund be managed in the long term?
Have all legal/procurement issues (including State Aid
issues) been considered?
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