Wales prepares two projects under Non-profit distributing model

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Wales prepares two projects under Non-profit distributing model

The Welsh Government, through the  finance minister Jane Hutt announced that £1 billion will be invested in Welsh infrastructure projects between 2017-18 and 2021-22.

The new investments will include:

  • A465 Sections 5&6 (Dowlais Top to A470 Junction and A465 / A470 Junction to Hirwaun). The total investment is estimated at £300 million. This project means that the whole of the A465 is expected to be dualled by 2020.
  • A new Specialist Cancer Care Centre, enhancing the capacity of the Velindre Trust. The total investment is estimated at £210 million. This will enable the construction of a brand new hospital to provide cancer patients with access to high quality services.

The two major infrastructure projects will be financed using a not-for-profit vehicle used in Scotland, which caps the levels of returns for private bodies at the stage of funding agreements.

The NPD model, which was designed as a less-controversial successor to the tainted UK Private Finance Initiative (PFI) system, allowing private money to be invested, but dodging the PFI allegation it allows private firms to cream off ever-increasing profits from public projects.

The Minister also confirmed that the results of a consultation on the major enhancement of the M4 around Newport are currently being considered and a decision is expected this summer.

Ms Hutt stated:

In today's challenging economic environment, compounded by profound social change, finding new sources of funding is harder than ever. But this additional expenditure is an investment in our economy and in our people. In short, it is an investment in the future of Wales.

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