The Government has unveiled a new guarantees scheme aimed at accelerating major UK infrastructure investment.
Up to £40 billion worth of projects that are ready or nearly ready could qualify and, subject to legislation, the first guarantees are expected to be awarded in the Autumn.
The National Association of Pension Funds and the Pension Protection Fund (PPF) have welcomed the news, saying that a government backstop will help give investors more confidence when it comes to funding big infrastructure projects.
Alan Rubenstein, chief executive of the PPF, commented: “This should give investors, including pension funds, the confidence to provide the financial support that such projects need.”
He added: “The announcement should also provide further encouragement to pension fund investors to support the Pensions Investment Platform, which both our organisations are working hard to establish.”
The platform, which will allow UK pension funds to pool their resources and invest in key UK infrastructure assets and projects in a new way, is on track to launch in January 2013.
Category: Financials, Insurance News
