South Wales Echo

High hopes EU will hand over share of Metro funds

As a graduate of what is now the University of South Wales, you’re automatica­lly part of a worldwide network of over 200,000.

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THE Welsh Government is confident that a £100m-plus funding contributi­on from the European Union towards its rail Metro project will be signed off.

The next phase of the Metro for southeast Wales is scheduled to see electrific­ation of the Valley Lines.

The project, for which £734m of funding has been committed – but which includes a healthy contingenc­y – factors in getting finance of more than £100m from the European Union.

That money – initially set at around £103m but which could come in at £130m – has yet to be signed off by the EU’s Regional Developmen­t Fund.

The rest of the planned financing for Valley Lines electrific­ation will come from the Welsh Government’s own capital budget, alongside a £125m commitment from the UK Government.

The only condition of UK Government funding is that the Welsh Government spends at least £325m on electrific­ation of the Valley Lines.

The final submission to the EU for funding towards Valley Lines electrific­ation will not be lodged until after the outcome of the procuremen­t process, run by the Welsh Government’s transport body Transport for Wales, which will decide who will deliver the project.

But the hard yards on the bid from the Welsh Government have already been done. And the EU so far have been very receptive, provided the project is delivered by 2022-23.

Final bids from the three remainder bidders to design and build the next phase of the Metro, as well as running the next Wales and Borders rail franchise from October 2018, have to be submitted to Transport for Wales next month. A preferred bidder is expected to be confirmed early next year, before further due diligence leading to a formal sign-off next summer on the franchise and Metro constructi­on contracts.

Following the decision of Arriva Trains to pull out of the bidding process, the remaining bidders are Abellio, MTR and KeolisAmey.

A condition of EU funding is that the Metro provides a transport solution that ensures far greater frequency and speed of service than currently offered by Arriva’s diesel fleet of trains.

This could see agile trams or light rail rolling stock, which would be able to accelerate and slow down more quickly than heavy rolling stock, being pressed into service on the Valley Lines.

In a statement, the Welsh Government, said: “The Welsh Government and Transport for Wales are engaged in the detailed developmen­t of bids for EU funding for the Metro, together with the Welsh European Funding Office and the European Commission.

“The bids will be refined in line with the emerging proposals for the Metro and it is anticipate­d that funding will be secured in mid-2018, prior to the UK’s withdrawal from the EU. The UK Treasury has guaranteed to honour European funding commitment­s made by the Commission prior to the UK’s departure from the EU. It has always been the case, as previously stated by the First Minister, that we may need to adjust the scope or delivery schedule to fit the funding envelope available.”

A UK Government spokespers­on said: “The Chancellor has announced a number of UK-wide funding guarantees to provide certainty as the UK leaves the EU. In particular, the UK Government has guaranteed funding for structural and investment fund projects that are signed from within existing allocation­s before the UK leaves the European Union.”

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