Circuit of Wales

lil red rocket pilot said:

apparently they are starting construction in February this year.

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The Circuit of Wales remains confident it will be given the green light and signed-off by the Welsh government this week as critical deadlines loom.

It is a crucial week for the Circuit of Wales, which has faced a number of hurdles since it was first announced in 2013, with a decision set to be made on whether the investment of taxpayers' money is classified as state aid – which is illegal under European Union Law for such a project.

The Welsh Government is estimated to be investing £32m in the circuit, having already committed £17m with around £2m spent on the lengthy planning and public inquiry.

The issue was sparked by legal advice given to Welsh Assembly minister Edwina Hart MP which says the investment is considered state aid and therefore illegal.

Circuit of Wales lawyers maintain the project providing up to 6,000 new jobs in the Blaenau Gwent area, but without Hart signing-off the project could collapse entirely.

It has also been confirmed that Aviva, who is estimated to be putting £350m into the project, have shown known signs of wavering despite latest speculation after archaeological excavation work began at the Ebbw Vale site.

A decision is being pushed with a deadline of Thursday before the Welsh Assembly will be dissolved ahead of next month's elections.

The Circuit of Wales project is aiming to create up to 6,000 new jobs at the track, two hotels and an industrial site. The venture secured a five-year deal with Dorna which began last year and had originally hoped to move the event to Ebbw Vale in 2017 but after interruptions in confirming financial backing MotoGP has been delayed by 12 months, with the Welsh circuit expected to take over hosting duties in 2018.
Read more at MotoGP News - Circuit of Wales confident it's still on course for go ahead

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#22 said:

Yeah, because Rockingham was a huge economic and social success wasn't it?

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MotoGP News - Circuit of Wales hit as Welsh Government cannot underwrite project

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The Welsh Government says it cannot underwrite the full £357m of Circuit of Wales but the project will continue with further negotiations, according to CEO Michael Carrick.

Edwina Hart MP has confirmed there is an 'unacceptable risk' for the government to underwrite the entire project having taken external legal advice.

Earlier this week the Circuit of Wales, which has faced a number of hurdles since it was first announced in 2013, expected a decision set to be made on whether the investment of taxpayers' money is classified as state aid – which is illegal under European Union Law for such a project. Circuit of Wales lawyers had maintained the project would provide up to 6,000 new jobs in the Blaenau Gwent area, but without Hart signing-off the project could collapse.

In an open letter from Hart to First Minister Carwyn Jones, the government has been working with the Circuit of Wales for a viable solution without success but is still open to supporting the project if any new investors can be found to help.

"As you will be aware we have been working to support this project for a significant period of time and have already in effect spent around £9m in support of its development,” Hart's letter said. "We also explored sharing the risk with several local authorities, and as you are aware that option also failed unfortunately.

"In these last few days we have considered that a guarantee of 80% of the total value of the project may have reduced our risk to an acceptable level, but the circuit have not been able to secure any real private risk capital and so this option has not been possible."

Ministers had initially agreed to provide a grant aid of £16m to support the jobs created by the Circuit of Wales but negotiations faltered when the Welsh Government was asked to provide financial guarantee to the private funding from backers Aviva.

Michael Carrick, CEO of Heads of The Valleys Development Company which is behind the project, has confirmed talks with the Welsh government and Aviva will continue with the plan now delayed.

"We respect and understand the minister's decision on the support for a 100% guarantee for our private funding,” Carrick said. “While this was our clear preference and reflective of the negotiations we have held over the past six months, we accept that the project will need to progress on revised terms.

“The pre-enablement works and ecology activity has already commenced and we have a range of contractors engaged on creating sustainable employment opportunities in this challenged area.

"We will continue negotiations with the Welsh Government, the local authorities and Aviva Investors to advance the development on revised terms that will be acceptable to all parties."

The project could be delayed further with the Welsh Assembly being dissolved ahead of next month's elections and a revised schedule is to be expected.

The Circuit of Wales project is targeting the creation of between 4,000-6,000 new jobs over the next ten years through commercial developments, planned business relocations and motorsport-related opportunities.

The venture secured a five-year deal with Dorna which began last year and had originally hoped to move the event to Ebbw Vale in 2017 but after interruptions in confirming financial backing MotoGP has been delayed by 12 months, with the Welsh circuit expected to take over hosting duties in 2018.

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#22 said:

It's over, the Welsh government has backed out. No way on earth this gets built now.

I'm glad too. It would be a joke for the Welsh goverment to plough millions into this, when probably the biggest employer in South Wales (Port Talbot Steelworks, with up to 40,000 employees) is laying people off and getting no government help that I know of.

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Jumkie said:

MotoGP: Circuit of Wales billed for gardening work at director?s house | MCN

Content Warning: Look ....... (.)(.)

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libby said:

Does that mean its stuck at bloody Silverstone? grrr:devil: bloody place

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lil red rocket pilot said:

Not really, Shiverstone has no interest in paying Dorna, They made that perfectly clear when they did not want to renew the contract in 2013 hence the COW getting the rights,
Unfortunately I see no british gp after the COW contract has run its course.

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povol said:

But if COW is never to be, Silverstone will hold the cards against Dorna for a change and can negotiate their way instead of being bent over a stump. Dorna will have a race in the UK, bank on it.

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Circuit of Wales has seen its latest funding application to commence building work denied by the Welsh Assembly, but Economic Secretary Ken Skates has laid out new terms of agreement which need to be met to give the project the green light.

The Circuit of Wales project leaders, the Head of the Valleys Development Company, had been seeking loans of £90 million from the local councils of Blaenau Gwent and Monmouthshire after having its initial funding plan – to get the Welsh Assembly to underwrite the entire project – was rejected in April.

The latest decision has been sparked by the current economic uncertainty caused by Brexit and the government sees the risk of the revised plan as 'unacceptable'. Skates is set to confirm the project is still welcomed by the Welsh Assembly but will need to meet new terms.

"Unfortunately, despite the efforts of the project backers, this leaves only around 17% of the risk being taken by the private sector," Skates said on BBC News. "My door remains firmly open and I have urged them to revise their bid in such a way where the private sector takes more of the risk in order for this project to be taken forward.”

In the new funding plans 50% of the finance needed to complete the construction will have to be raised privately while 50% of the underwriting will also need to come from the private sector.

The Circuit of Wales project is set to be financially backed by insurance giants Aviva and it is not yet know how these latest requirements will affect its commitment to the project.

The Circuit of Wales is targeting the creation of between 4,000-6,000 new jobs over the next ten years through commercial developments, planned business relocations and motorsport-related opportunities.

The venture secured a five-year deal with Dorna which began last year and had originally hoped to move the event to Ebbw Vale in 2017 but after interruptions in confirming financial backing MotoGP has been delayed by 12 months, with the Welsh circuit expected to take over hosting duties in 2018.

Silverstone will host this year's British MotoGP and is likely to be called upon for the 2017 race but this is yet to be confirmed by Dorna.

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JPSLotus said:

Not if Dorna pulls a Bernie Ecclestone and decides to simply not run a race in the UK.

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