Circuit of Wales has two weeks to provide funding details

The Heads of the Valleys Development Company, the firm behind the £425million Circuit of Wales project in the Ebbw Vale, have been given two weeks by the Welsh Government to submit a new, feasible funding plan, according to BBC Wales.

The Circuit of Wales was awarded a deal by MotoGP commercial rights holders Dorna Sports back in 2014 to host the British Grand Prix from 2016 onwards. However, ongoing delays with the project, coming as a result of continual rejections of HOVDC’s funding proposals, has seen the construction of the circuit fail to begin.

Financial giants Aviva came onboard in 2015 as the project’s main backer, though HOVDC have been wanting the Welsh Government to underwrite all of the £425million required for the project. In the wake of Brexit, the Welsh Assembly declared this too big a risk on the Welsh taxpayer and subsequently rejected their proposal. HOVDC were told by Economy Secretary Ken Skates to come up with half of the budget themselves and secure the other 50% from private investors.

Since 2015, Silverstone has been staging the British round of the MotoGP World Championship with the Circuit of Wales funding and organising the event. The Northamptonshire circuit will play host to MotoGP once again in 2017.

With HOVDC yet to produce evidence of any genuine private investment, Mr. Skates has asked the firm to speed up the process in securing funding as he feels the public have a right to know if and when the project will get off the ground.

“I am keen to avoid more opportunity costs associated with the project that does not have a final date,” he said.

“I have therefore written to the Heads of Valleys Development Company today asking them to make faster progress on this project and asking for evidence to be provided to me of named investor term sheets within the next two weeks.”

A spokesman from the circuit stated to BBS Wales that they too have a ‘desire for a speed resolution which ties in with our own proactive timetable.’

HOVDC claim that the track and surrounding business and entertainment park could bring 6000 jobs to the area, with 750,000 visitors expected annually and a yearly injection of £50million into the Welsh economy.