(9 years, 8 months ago)
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The Chief Secretary to the Treasury (Danny Alexander)
The Infrastructure (Financial Assistance) Act 2012 requires the Government to report any financial assistance given under the UK Guarantees scheme. The scheme provides a sovereign-backed guarantee to help infrastructure projects raise debt finance. A commercial fee is charged to the borrower for the guarantee, determined by the nature of the guarantee and the risk inherent in the project.
The Government can confirm they have approved guarantees under the UK Guarantees scheme for Ineos Grangemouth ethane import and storage facilities (£230 million/€285 million) and Speyside CHP plant (£48.2 million).
Ineos Grangemouth will be constructing new port facilities, a new ethane tank and associated modifications to the KG ethylene cracker. This will reduce dependency on feedstock from the North sea through the import and storage of ethane from the US. The guarantee issued to Speyside will be used for the construction of a combined heat and power plant which will generate both electricity and heat.