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  Formation of new infrastructure bank is "excellent move", say ACE
 
Issued: 02 March 2009

Leading construction industry business association, the Association for Consultancy and Engineering (ACE), has welcomed reports that chancellor Alistair Darling is to announce the introduction of a new infrastructure bank on 3 March 2009.

The initiative, tipped to be headed by Partnerships UK director Andy Rose, has been designed to rejuvenate the construction sector and it is hoped that the new bank will enable a queue of major infrastructure and building projects to proceed with the financial backing required to see them through to completion.

ACE chief executive Nelson Ogunshakin said today: “If these reports are true then we welcome what would be an excellent and well-crafted move which should help to increase momentum in the consultancy and engineering sector and wider construction industry by bringing forward a number of much-needed infrastructure projects. Commenting on the make up of the bank, Ogunshakin said: “We would expect that any such national infrastructure bank should include experienced construction professionals as well as bankers to run it effectively.”

Ogunshakin continued: “We also urge the government to take all the necessary steps to ensure that the lending process is effective and that priority is given to projects already planned so that the industry can get to work on them as soon as possible.”

The M25 widening programme and the £3.3bn Manchester private finance initiative (PFI) waste programme are two schemes near the top of the government’s agenda which could be in line to benefit from the formation of the infrastructure bank, which will be capitalised with several billion pounds from inception. It is widely documented that infrastructure deals have suffered heavy effects from the credit crunch and the demise of Britain’s banks. Lack of lending has had a knock-on effect, despite infrastructure being usually regarded as a low-risk sector.

Ogunshakin said: “Being constantly in touch with firms of all sizes in this crucial sector for the UK economy, ACE will be happy to work with the new infrastructure bank to ensure that any money made available is spent in the right areas. We feel very strongly that better communication and collaboration between the construction industry and the banks can help our sector to keep moving in the current difficult economic situation and give these projects a meaningful boost.”

-ENDS-

Further information and photos can be obtained from ACE communications and public affairs director Andy Walker on 020 7227 1889, 07947 558654 (mobile) or email awalker@acenet.co.uk.


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