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Regional Infrastructure Fund (RIF)

Project summary

The innovative Regional Infrastructure Fund (RIF) was launched by the South West RDA in March 2008 to help overcome a major barrier to development namely the timely provision of infrastructure on key sites. The first fund of its kind in the country, the RIF allows a "re-cycling" of investments to deliver essential infrastructure much earlier than it might otherwise be provided. Once provided up front, the Fund then reclaims the investment from private developers. These re-cycled funds are then available again for the RIF to support further up-front infrastructure investments around the region.

Main messages

The Fund is the first of its kind in the country

The RIF provides forward funding to ensure major infrastructure projects in the region can be delivered much earlier than it might otherwise happen

The RIF allows a "recycling" of investments. Once provided up front, the Fund then reclaims the investment from private developers through the current planning obligations process (Section 106 contributions as collected by local authorities). These re-cycled funds are then available again for the RIF to support further up-front infrastructure investments around the region.

Facts and figures

  • The RIF was launched in March 2008 with an £80 million fund. An investment panel drawn from the public and private sectors advises the RDA on all aspects of potential investments from the RIF
  • The South West RDA has already approved the use of RIF funds to help bring forward several key infrastructure projects in the region, including:
  • A total of £22 million in joint RDA and Department for Transport investments to kick start the recession-delayed development of a new community at Cranbrook, near Exeter. This development will also now be a low carbon development as the result of leverage gained from RIF investment
  • £9.96 million towards the Twin Sails Bridge scheme in Poole Harbour
  • £2.4 million to combat flooding in Taunton Deane

Case study

The Cranbrook and East of Exeter areas have been identified as the major growth area for Exeter in the next 20 years and the RIF is playing a key role in opening up land and transport links for development. The combined £22 million investment will pay for a package of infrastructure projects – including motorway junction improvements, new roads and a new railway station. This will allow for the initial development of 2,900 homes at Cranbrook and the release of 75 hectares of land to support businesses. This will help create up to 4,500 jobs and enable key projects to proceed including the Skypark business park and Exeter Science Park.

Poole’s £37 million Twin Sails Bridge project will deliver a much-needed second harbour crossing for Poole and unlock the potential for the regeneration of 26 hectares of brownfield land, creating up to 5,000 jobs and allowing the development of new homes, offices, shops, community and leisure facilities.

The Taunton flood alleviation scheme paves the way for the development of some 1,500 homes and 80,000 m2 of employment floorspace, which could accommodate up to 6,000 jobs.

Conclusion

The RIF is already making a significant impact in bringing forward essential infrastructure in the region much earlier than it might otherwise happen.

The first three schemes approved for investment are of local and regional significance and will unlock the potential for new business space, homes and jobs.

Two scheme case studies  are available as below:

Further information

Date case study written: September 2009

Contact: South West RDA press office by email news.enquiries@southwestrda.org.uk or telephone 01392 229389

A train at Plymouth railway station

New houses in Gloucestershire