UK Infrastructure Bank: from mind the gap to fill the gap?

Stemming from the National Infrastructure Plan, here comes the Infrastructure Bank!

Driving Economic and social growth through capital investment projects is often seen as a policy option to fast-track economic development or recovery. This was probably on the mind of Rishi Sunak, Chancellor of the Exchequer and himself a former investment banker, who stands behind the National Infrastructure Strategy recently unveiled, and which aims at stimulating the country economy through large projects.

As part of this strategy which Decide will analyse and share with readers, the setting up of a national infrastructure Bank triggered comments and enthusiasm from various segments of industry which welcomed this signal under the current difficult circumstances.

The Bank will leverage the financial capacity for large public infrastructure projects and thus aims at filling the gap left by EU institutions such as the Council of Europe Development Bank or the European Investment Bank.

Decide friends at the PPP Bulletin highlight that amongst other investment models, the Bank will be able to co-invest with the private sector through a mix of loans, guarantees and taking equity stakes in projects.

The value added expected from the Bank will also reside in its contribution to the net zero agenda of the Government, as well as closer and more effective public-private collaborations. Due to be launched and fully operational in Spring 2021, the bank also has a specific agenda to “crowd-in private capital” for infra projects, to quote National Infrastructure Commission Sir John Armitt.

Again, more analytical insight to come from Decide. If you are interested in the National Infrastructure Strategy, you can find it attached to this article!