Fresh doubt over the Circuit of Wales project in Ebbw Vale will not affect TVR’s decision to locate its production facility in south Wales, according to a spokesman for the reborn sports car company.
The plan to build an international-standard race track and automotive business park in the Welsh valleys has today been hit by the news that the Welsh Government will not underwrite private investment in the venture.
The Welsh Government had been asked to financially guarantee the whole of the project, which has attracted £357 million of private funding, with insurance firm Aviva one of the major backers.
The Heads of The Valleys Development Company claimed that the Circuit of Wales and associated businesses would create as many as 6000 new jobs in the area, which is one of the most deprived in Wales. It is now hard at work on a revised financial deal.
A TVR spokesman told Autocar: “Even if the Circuit of Wales is 100% off the table then it changes nothing. TVR will still locate in south Wales, albeit at a different site.”
Welsh economy minister Edwina Hart said the Welsh government’s decision not to back the circuit had been made after legal consultation: “The final official advice recommends that I should not agree to underwriting the Aviva investment in the scheme for two reasons.
“Firstly, the significant question around the viability of the project and second, the unacceptable risk to the Welsh Government of in effect underwriting the entire project.