Tideway finance boss not worried about loss of EIB funds

Investors "crowded out" by EIB could have bigger role post-Brexit

Losing funding from the European Investment Bank (EIB) as a result of Brexit will not cause any “significant harm” to the UK’s infrastructure pipeline.

Speaking to Utility Week, Tideway chief financial officer Mark Corben allayed fears there could be an impact on UK utilities, and other infrastructure developers, if they are unable to access EIB funding once the UK’s exit from the EU has been completed.

He said: “I don’t think its as fundamental as there not being another large private sector project – that is probably too far.

“There are other people who welcome the potential for the EIB to step back, because to some extent the EIB has crowded out the commercial banks and I think some of them would welcome the chance to play a bigger role and keep investment coming into the UK.”

Corben acknowledged, however, that loss of access to the EIB could pose some challenges for infrastructure investment. He said that, unless an equivalent body providing low cost capital is forthcoming, the cost of future investments could be impacted, and that it may become “more difficult to get projects off the ground”.

“It will push up costs if you take away a provider who typically provides a lot of low cost capital, particularly in the absence of anything else,” he stated.

Last month chancellor Phillip Hammond unveiled plans to help mitigate any negative impacts for infrastrucutre investment post-Brexit. He said government will “broaden the range” of its UK Guarantees scheme under which the government underwrites lenders to infrastructure projects. 

The chief financial officer confirmed that the loan agreed between the EIB and Tideway is “signed and sealed”, and the Brexit will not impact on it.