Innovative Finance in Wales: The Story so Far Steve Davies Head of Financial Innovation 1

The Capital Budget since 2009-10

A New Approach The Programme for Government provides a mandate to explore innovative ways to deliver public sector infrastructure In 2012, the Welsh Government publishes the Wales Infrastructure Investment Plan In December 2014, the Wales Act provides new borrowing powers

Early Successes Since 2012-13, Local Government Borrowing Initiative has enabled £170 million for highways’ improvements From 2014-15, this initiative will see £170 million raised to accelerate school building programme Launched in 2013, the Housing Finance Grant enabling £125 million investment in social and affordable housing

Wales and Private Finance Thirty PFI schemes currently in operation in Wales Majority of these are Local Health Board and Local Authority schemes None closed since 2008

Wales and Private Finance (II)

Innovative Finance Pipeline During the course of 2014, Government announces £1.9 billion pipeline Includes £1 billion NPD pipeline Also includes new instruments to raise finance for flood risk management and housing And makes commitments on direct borrowing

The NPD Pipeline Three schemes announced: Completing dualling of the A465 Transforming cancer services in Wales Delivering priority learning environments

Completing Dualling of the A465 The 40km Heads of the Valleys road, from

Completing Dualling of the A465 (II) To be delivered as a single project Estimated capital value of £300 million Extent of network to be owned / maintained by the Project Company to be determined Concession period expected to be thirty years

Completing Dualling of the A465 (III) OJEU not expected before autumn 2016 Construct, operate and maintain between 2018-2048 Expected to be operational in 2020-21

Transforming Cancer Services in Wales Velindre NHS Trust provides non-surgical cancer services for 1.5 million people. An exemplary centre fast running out of capacity New referrals increasing

Transforming Cancer Services in Wales (II)

Transforming Cancer Services in Wales (III) Not an estates-led solution, about shaping a new service model Service model facilitators now on board PQQ issued for Technical Advisers Expect to see patients treated in new establishment in 2021

Delivering Priority Learning Environments Existing 21st Century Schools Programme will see £1.4 billion of investment between now and 2018-19 Capital-funded programme, which includes rebuilding and major refurbishment projects

Delivering Priority Learning Environments (II) New round of investment to begin in 2019-20 £500 million to be undertaken via NPD Planning at an early stage, but timetable tight

Partnership