Pensions funding infrastructure projects is not a new concept to the UK; HS1 is a prime example of this.
However much has been made of the model used for the Thames Tideway project. With many saying it is a blueprint to how future large scale developments can be funded going forward.
Institutional investors from all over the world have been looking into the potentially low risk infrastructure projects offering a long term return. This type of funding is starting to have an impact on the more traditional project investment companies, who typically tend to look for larger returns on investment to please stakeholders.
UK institutional investors could provide financial support for a nuclear power plant development if given the right structure, according to the chief executive of the Pensions Infrastructure Platform (PiP). Mike Weston, who has led the PiP since its formation in 2014, said the government should consider a similar funding structure to that employed in 2015 when securing institutional backing for the Thames Tideway Tunnel, a project to modernise London’s sewers.The site for the nuclear power station in Wylfa Newydd on the island of Anglesey is owned by Hitachi.The company is reportedly in talks with the Japanese government to secure funding for its construction, but Weston argued that it could be an ideal investment for UK pension funds.