Welsh Government confident it will get £100m plus EU funding contribution toward its Metro project

The Welsh Government is confident that a £100m plus funding contribution from the European Union towards its rail Metro project will be signed off (November 9th).The next phase of the Metro for south east Wales, is scheduled to see electrification of the Valley Lines.The project, for which £734m of funding has been committed – but which includes a healthy contingency – factors in getting finance of more than £100m from the European Union.Initially set at around £103m but which could come in at £130m, that money has yet to be signed off by the EU’s Regional Development Fund.The rest of the planned financing for Valley Lines electrification will come from the Welsh Government’s own capital budget, alongside a £125m commitment from the UK Government.The only condition of UK Government funding is that the Welsh Government spends at least £325m on electrification of the Valley Lines.The final submission to the EU for funding towards Valley Lines electrification will not be lodged until after the outcome of the procurement process, run by the Welsh Government’s transport body, Transport for Wales, which will decide who will deliver the project.But the hard yards on the bid from the Welsh Government have already been done. The EU so far have been very receptive, providing the project is delivered by 2022/23.Final bids from the three remaining bidders to design and build the next phase of the Metro, as well as running the next Wales and Borders rail franchise from October 2018, have to be submitted to Transport for Wales next month.A preferred bidder is expected to be confirmed early next year, before further due diligence leading to a formal sign off next summer on the franchise and Metro construction contracts.Following the decision of Arriva Trains to pull out of the bidding process, the remaining bidders are Abellio, MTR and KeolisAmey.