12 November, 2016
Chinese and international investors have been invited to bid for over £5 billion worth of infrastructure and regeneration projects in the north of England.
A 'Northern Powerhouse investment portfolio' of planned projects requiring private investment has been published to coincide with a two-day Chinese state visit to the UK, at which the governments of the two countries will discuss ways to strengthen economic and trade links. The projects include the expansion of MediaCityUK in Salford, headquarters of the BBC; and a 1,000 home regeneration project at Pall Mall in Liverpool.
Philip Hammond, UK chancellor of the exchequer, described the publication as a "major opportunity" to showcase investment opportunities in the north of England. Foreign direct investment into the region grew at twice the national average last year, the government said.
"This portfolio, opening up billions of pounds of investment-ready projects to Chinese investors, will support our work to grow and create jobs across the north, as well as underpin our ambitions to bring world-class infrastructure to every corner of Britain," Hammond said.
"It's positive to see the government showing clear support to the Northern Powerhouse project, whilst also showcasing that Britain is open for business," said infrastructure law expert Nick Ogden of Pinsent Masons, the law firm behind Out-Law.com. "Chinese investors have not been deterred by Brexit, and we continue to expect over £100bn to be invested by China into Britain's ailing infrastructure by 2025."
"The challenge for government going forward will be to show how these projects will get built if Brexit leads to a skills shortage in the UK," he said.
China's vice premier Ma Kai and other senior officials are currently visiting London for a series of talks and discussions under the label of the eighth UK-China Economic and Financial Dialogue (EFD). During the two-day event, Ma will meet with UK prime minister Theresa May and Mark Carney, governor of the Bank of England; and is expected to make a number of announcements related to trade, investment and financial services.
The UK government made a series of infrastructure-related announcements ahead of the visit. Chinese state-owned construction company CITIC is to open its UK headquarters at the new development planned for London's Royal Albert Docks, while CITIC and ABP, a Chinese developer, have committed to £320 million of investment into the planned commercial hub as part of Phase 1 of its construction. The UK has also committed to up to £40m of investment into an Asian Infrastructure Investment Bank (AIIB) fund, which will be used to help developing countries to prepare infrastructure programmes.
The Northern Powerhouse Investment Portfolio consists of 13 projects, each worth over £100m. These include the MediaCityUK expansion project; an office and logistics development at Sheffield Airport and new housing and employment-led developments in Future Carrington, Trafford; Kirkstall Forge, Leeds; Unity, Doncaster; and Liverpool Waters. Industrial investment opportunities include the Protos gas-fired power generation project at Ellesmere Port, Cheshire; and construction of the first potash mine in the UK for over 40 years at Whitby, North Yorkshire.
For further information, please contact:
Ian Laing, Partner, Pinsent Masons
ian.laing@pinsentmasons.com
