UK Infrastructure Bank was officially launched today with a promise to support regional growth.
The new bank, based in Leeds, can now issue loans, investments or guarantees for infrastructure projects.
A statement from the Treasury Department said it will initially only grant loans to private projects and will be available to local councils later in the summer.
It was built with an initial financial capacity of 22 billion pounds 2.5 billion a year. The Treasury Department said it would increase its capabilities and capacity over time.
Former British Land CEO Chris Grigg is the chairman of the bank. He said: âThe new UK Infrastructure Bank is open for business. I am excited to lead this institution, which will be a catalyst for investment to support regional economic growth and net zero ambitions. “
The bank will give priority to lending for clean energy, transportation, digital, water and waste projects.
Chancellor Rishi Sunak said the bank will accelerate the government’s ambitions to fight climate change and level it out, while creating new opportunities across the UK.
“Through the bank we are investing billions of pounds in world-class infrastructure that supports people, businesses and communities in every corner of the UK,” he said.
Civil Engineering Contractors Association General Manager Alasdair Reisner said that contractors will play a key role in bringing new projects to life: âWe look forward to working with our members and the new bank to ensure that the UK contractors’ expertise is in The identification will take full advantage of the programs that will stimulate economic growth, create jobs and provide opportunities to invest in low-carbon infrastructure. “
In November the government said the facility would replace some of the functions of the European Investment Bank in the post-Brexit period but promised it would be able to âprovide more targeted support than the EIB to better serve that of the UK government to be coordinated â. Aims”.
However, figures from the Office of Budgetary Responsibility show that it will initially provide less than half of the annual funding allocated through the EIB.