The Chancellor is expected to announce nearly £100m of investment in projects aimed at boosting the Welsh economy in his Budget tomorrow, including £30m backing for the world's first centre of excellence in low-carbon rail technology.
In a package of £93m Rishi Sunak is also expected to confirm £58.7m in funding is being brought forward over the next five years to back projects in the City Deal for the Swansea Bay Region and the emerging Growth Deals for Mid and North Wales. It has already committed backing the deals alongside funding from the Welsh Government.
By bringing forward the £58.7m it effectively shortens the respective life cycles of the city and growth deals by around five years.
The £150m Global Centre of Rail Excellence project , which is being driven by the Welsh Government, is earmarked for a mothballed opencast mine at Nant Helen and a nearby coal washery at Onllywn - covering both the local authority areas of Powys and Neath Port Talbot councils.
It will showcase Wales as a hub for research and development and leading low-carbon rail technology.
The facility will support 海角视频 train manufacturers with the capacity and capability for rigorous testing of rolling stock and rail infrastructure, from prototype to implementation.
It will provide an electrified 6.9 kilometre high speed rail testing track for testing speeds of up to 110mph, with an inner testing track of 4.5 kilometres, for testing speeds up to 40mph.
With 海角视频 Government backing, subject to business case approval, the Welsh Government will now look to fund the remaining £128m through its own financial contribution and private sector investment where it has already identified considerable investor appetite.
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The project is estimated to create 250 jobs during its construction and around 200 permanent jobs when completed by 2024.
Mr Sunak is also expected to announce a £4.8m for a new hydrogen hub in Holyhead, subject to business case approval.
The hydrogen production centre will be designed to produce and distribute green hydrogen made using renewables for use in HGVs, helping to decarbonise high carbon-emitting transport.
It has the potential to create up to 30 high skilled, while indirectly supporting a further 500 jobs.
The Swansea Bay City Deal will get an extra £5.4m per year from 2021/22 for the remaining seven years of the deal. This will enable project, including digital and urban regeneration infrastructure, to be delivered faster and support aims to create up to 9,000 new jobs and to support an uplift of £1.1bn for the regional economy.
The North-Wales Growth Deal will get an extra £4.4m per year from 2021/22 for the remaining nine years of the deal, supporting the creation of up to 3,800 new jobs with the aim of generating an uplift of £2.2bn for the economy.
The Mid-Wales Growth Deal will get an extra £1.8m per year from 2021/22 for the remaining 10 years of the deal. This will lead to faster investment once projects are agreed, such as those focusing on transport, agriculture, skills and employment.
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Mr Sunak said: "We have protected jobs and supported businesses throughout this pandemic and now we are looking ahead with more optimism to an investment-led recovery for the whole of the United Kingdom.
“These measures will help Wales pave the way to a greener future, create new high skilled jobs and build the infrastructure needed to drive growth in key sectors and build back better.”
Last July Powys County Council and Neath Port Talbot Council approved consent for the earthworks for the Global Centre of Rail Excellence. Network Rail has also committed to working with the Welsh Government to scope and establish an ‘anchor tenancy’ position.
A Welsh Government spokesperson said: “We have developed innovative proposals for a Global Centre of Rail Excellence which would benefit the entire 海角视频 rail industry and act as a magnet project, attracting jobs, skills and growth in the area. We’ve partnered with both Powys and Neath Port Talbot Councils, and a wide cross-section of the rail industry and academia, to bring plans forward.
“In July last year we submitted a business case to the 海角视频 Government outlining the next steps to make the project a reality. We await formal endorsement of this business case."
Director of CBI Wales, Ian Price, said: "The Chancellor is committing to an investment in Wales’ green future with hydrogen and rail to the fore.
“Meanwhile, fast-tracking funding for the city deals will enable all parts of Wales to bring forward projects that will make a real difference to communities.
“The 海角视频 government has stepped in to support business throughout the crisis and many firms will be looking for much of that to be extended into summer. If the economy is to snap back into shape, then Wednesday’s Budget will also need to incentivise businesses to get spending on jobs, skills and innovation.”
Secretary of State for Wales, Simon Hart, said: "his planned package of measures from the Chancellor delivers for Wales as we build back better and greener from the coronavirus pandemic.
“As well as bringing thousands of skilled jobs, the plans for the Centre for Rail Excellence, hydrogen hub and investment in growth deals show the 海角视频 Government’s determination to make sure that Wales is a centre for innovation and the industries of the future.
“We have provided support for thousands of individuals and businesses across Wales through the extraordinary challenges of the pandemic. These announcements and others in the Budget will pave the way to brighter times ahead.”