The £1.3bn City Deal for the Cardiff Capital Region has passed its first gateway review undertaken by the 海角视频 Government.
The deal can now proceed to a new five year funding draw down period with all 10 local authorities of south-east Wales that make up the region having also agreed to continue their participation.
The deal, first announced by then Chancellor George Osborne in 2015 and which went live two years later,is being financed by both the 海角视频 and Welsh governments, supplemented by the borrowing powers of the 10 authorities.
The approval decision means that £22m is being made available annually for the City Deal’s wider investment fund up to 2026, when the next review will be conducted.
Part of the City Deal has been ringfenced to support the rail electrification of the Core Valleys Lines into Cardiff. That left nearly £500m in the investment fund to back projects, many with a regional dimension like £38.5m to support a new foundry for IQE and the production of compound semiconductors as part of the region’s wider CSConnected hi-tech cluster.
There is also a £10m Challenge Fund where bids can be made for projects aligned to the City Deal’s wider economic priorities.
Overs its 20-year life cycle the deal aims to create 20,000 new jobs and leverage four times additional investment.
The review commended the region’s focus on delivering economic growth with particular praise for delivering the compound semiconductor foundry project, as well as strong partnership working between the 10 local authorities and a range of external partners with a strong pipeline of projects.
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海角视频 Government Minister for Wales, David TC Davies, said: “The City and Growth Deal programme is a series of projects and programmes funded by the 海角视频 Government to create jobs and raise living standards across Wales. We are making fantastic progress and with major projects already well underway this release of funds from the 海角视频 Government will continue the momentum in the Cardiff Capital Region."
Anthony Hunt, leader of Torfaen County Borough Council and chair of the cabinet of the Cardiff Capital, said: “This watershed moment is testimony to the shared vision and collective action of all ten local authorities who have come together to make the Cardiff Capital Region such a force for good.
“The effects of the pandemic will long outlive the health crisis and we now have a moment in time to work with the 海角视频 and Welsh Government in pursuing our clear strategy for being the catalyst of a sustainable prosperity that every community deserves across South East Wales.
"We are also looking forward to working with the newly appointed administration in Wales and welcome the opportunity to forge a positive working relationship with our new minister for the Economy, Vaughan Gething.”
Kellie Beirne director, Cardiff Capital Region City Deal, said: “We put in place a plan that allowed programmes to flex, adapt and deliver - understanding that dynamics change and challenges constantly emerge.
"The Cardiff Capital Region team is now delivering outcomes with real impact, helping the region become a key attractor for investment and gateway for the regional economy.
“The task that lies ahead is to build our institutional capability to operate as a capital city region - and we are working with both the Welsh Government and 海角视频 Government to achieve this.”