The financing is provided through the Bank’s Local Authority function and will support the renewal and enhancement of flood defences in Aberaeron in Ceredigion, West Wales, an area which has suffered significant flooding in recent years.
This project is UKIB’s first investment in UK flooding infrastructure and will help to protect the community against an increased risk of coastal flooding, a problem that is likely to be exacerbated as sea levels rise and extreme weather becomes more common due to climate change.
The Bank’s financing will support the construction of a rock breakwater extending out from North Pier, refurbishment and re-building of the pier head of South Pier, construction of flood walls, construction of flood gate at Pwll Cam inner harbour and improvements to the existing defences on South Beach.
The project aligns with HM Treasury’s Statement of Strategic Priorities for the Bank which highlights the importance of UKIB’s support for projects that make UK infrastructure more resilient to climate change and better adapted to future risks. The schemes also support the Welsh Government’s National Strategy for Flood and Coastal Erosion Risk Management.
Lorna Pimlott, UK Infrastructure Bank Managing Director, Local Authority Advisory & Lending, said:
Flooding can have a devastating impact on lives and livelihoods. By supporting this scheme, we will both help improve resilience against climate change and provide Welsh coastal communities with enhanced protection against the effects of flooding. We’re pleased to be able to provide financing to accelerate this crucial project.
The £32m Aberaeron Coastal Defence project is funded via 85% provided by Welsh Government (through the Welsh Government’s Coastal Risk Management Programme Local Government Borrowing Initiative) and 15% provided by Ceredigion County Council.
Notes to editors
UKIB’s loan facility will finance the construction of flood defences at Aberaeron. Repayment of the loan will be supported by long-term grant funding provided to Ceredigion County Council via the Welsh Government’s Coastal Risk Management Programme.
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