The government has created a new financing guarantee scheme that was created with the intention of strengthening the infrastructure of waste and recycling projects within the country. Applications opened this week for the new UK Guarantees scheme that will help kick off many infrastructure projects that stalled due to poor credit conditions.
There are already £40b worth of projects that are close to or ready to qualify and once legislation is made final this autumn the very first guarantees are expected to come through and be finalised. Starting this week applications can be picked up from the HM treasury body Infrastructure UK. The focus of the body is to enable investment into the infrastructure of the UK and to place a priority on waste and recycling needs.
All applications that are accepted will see the Government underwrite financing so that credit can be obtained to fund projects. Therefore, the Government does not always actually provide the funding, simply makes it possible for businesses to get the funding they need from banks that otherwise might turn them down because of the adverse credit climate that is out there right now.
Danny Alexander, the Chief Secretary to the Treasury, stated that right now they are working on creating measures that will help get many infrastructure projects underway that will boost the economy and offer many benefits to thousands of people.
He added that there are five criteria that a project must meet in order to be considered for the scheme which include ready to start within 12 months, financially credible, project sponsorship, a guarantee to proceed within a reasonable time plan. And equity finance committed to the project that shows there will not be a significant level of risk placed on the taxpayers.