40 projects reached prequalified status for UK guarantee program

By Chris Hanson | October 23, 2013

Energy, road and rail projects worth £33 billion ($53.35 billion) were prequalified after applying for a U.K. government infrastructure guarantee program.

Of the 40 projects, half consisted of sustainable energy projects, which are eligible for the guarantee program. The prequalified projects named in the announcement included Helius Energy’s 100 megawatt (MW) biomass power plant at Avonmouth, Tilbury Green Power’s 60 MW biomass plant in Essex, and Chinook Energy’s waste-to-energy plants. An announcement from Helius reported the support is useful to secure the necessary finance before the end of the first quarter of 2014.

“Getting our infrastructure right means we can globally competitive, boost growth and create jobs across the U.K. What we see today is the extent to which the government is reaching out to help the private sector build Britain’s key infrastructure,” said Danny Alexander, chief secretary to the treasury. “Having passed the first hurdle, these companies know the government is there to help if they need it. I hope today’s announcement will encourage even more businesses to consider how they can take advantage of a guarantee.”

The prequalified projects will next go through an assessment and due diligence process prior to being presented to a risk committee and securing approval from the chancellor.