Welsh ministers threw out plans for the project in July 2016 when the developers asked for taxpayers guarantees amounting to 83% of the project cost. They have now come back with a revised proposal for less than 50% and are hoping to get spades in the ground within weeks.
“The deal that is on the table is certainly better than the one that was presented back in July,” said economy secretary Ken Skates. He said that the new pitch was a £100m improvement but it would still require due diligence before it could be approved – “to give us confidence that the investment, that the potential guarantee draw down, is something that the taxpayer is comfortable with and something that we are comfortable with”.
Located on an 830-acre site near Ebbw Vale, just north of Cardiff, the Circuit of Wales represents what the backers describe as “the UK’s most significant capital investment programme in automotive, motorsport, sports, leisure and arts and exhibition infrastructure in the last 50 years”.
A spokesperson for the Circuit of Wales said: “Heads of the Valleys Development Company confirms that it has submitted the business plan and term sheets for The Circuit of Wales development to the cabinet secretary for economy and infrastructure. The submission, developed with his officials over the past seven months, complies with his stated criteria and demonstrates private sector funding support for the project.
“This evidence has been provided to the cabinet secretary to support the Welsh government guarantee for a minority of the funding for the project. The guarantee would be for less than 50% of the £425m Circuit of Wales scheme, a development that will be entirely funded by private investors.
“We are now preparing to move to the confirmatory due diligence and final documentation process with the Welsh Government and our partners.
“We are working to a proactive timeline and look forward to beginning construction by the spring of this year, bringing to life our vision of a world-class hub for motorsport, leisure, tourism and innovation, which will be transformational for the local community, generating employment opportunities; and helping to both stimulate and diversify the Welsh economy.”
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