UK Development Agency mulls launch of £1b fund

The East of England Development Agency (EEDA) is considering launching a £ 1bn infrastructure fund to accelerate the delivery of projects in the region. In a statement, EEDA said it has commissioned a team of consultants, led by Colin Buchanan and Hewdon Consulting, to work up options for the regional infrastructure fund (RIF).

'The region has ambitious growth plans which cannot be realised without capital investment in its infrastructure. However funds are often not available in time and a RIF can accelerate funding and plug this gap', EEDA said on Thursday. The fund could provide funding from the banks or government sources to pay for infrastructure and replenish from future incomes such as a levy on new developments.

Steve Cox, EEDA's executive director of Strategy and Development, said: 'The regional infrastructure fund which EEDA is developing follows the recent Budget announcement in which the government asked regional development agencies to look at innovative funding mechanisms to pay for infrastructure.'

A business case for the fund is expected to be delivered during the summer.