More than 30 companies have expressed interest in using a 40-billion pound ($63 billion) government credit-guarantee plan for infrastructure projects, according to Chief Secretary to the Treasury Danny Alexander.
Alexander will tell company executives in London today that the government’s own Green Deal program that aims to make new homes more energy efficient will utilize the facility.
“Already we have had over 30 expressions of interest in the U.K. guarantees scheme and we continue to receive more on a daily basis,” Alexander plans to tell the conference, according to remarks released by the business department.
Prime Minister David Cameron’s government is using business deals announced at its two-week investment conference to show that it’s taking steps to help the economy grow as the U.K. struggles to emerge from its first double-dip recession since the 1970s. Policy makers are attempting to boost lending and kick-start a recovery after the recession deepened in the second quarter.
The Treasury last month said projects identified in the 2011 National Infrastructure Plan that face funding difficulties can apply for support. The plans need to be credible “with equity finance committed and project sponsors willing to accept appropriate restructuring of the project to limit any risk to the taxpayer.”
Several companies plan to announce contracts at the conference. They include Mott MacDonald Ltd’s appointment by the Abu Dhabi Sewerage Services Company to help develop underground pumping stations, Wates Construction Ltd’s contract to build two schools in Abu Dhabi and WS Atkins Plc’s new international design contracts and the opening of an office in Malaysia.
Other announcement include BDP Architects urban planning contracts in China, Subterra AS’s U.K. expansion to build pipe lining systems and Bluewater Bio Ltd’s technology alliance with Thames Water Plc.