Tees Valley approves loan framework to support Teesworks regeneration
The Combined Authority will formalise its loan procedures for the South Tees Development Corporation, replacing historic informal arrangements with agreements covering repayment terms, monitoring, and financial controls.
The framework applies to borrowing within the approved £350m loan facility available to STDC and is intended to strengthen governance around public investment while supporting the delivery of one of the UK’s largest brownfield regeneration projects.
Cabinet members also delegated authority for the final loan agreements to be completed.
According to the Combined Authority, an independent financial review concluded there is sufficient financial capacity for loans linked to land acquisition, site-enabling works and forward-funding activity to be repaid.
Treasury adviser Arlingclose also carried out independent financial modelling, which supported the proposals and found that, under current assumptions, the loans could be repaid within the remaining business rates retention period, including under stressed financial scenarios.
The new arrangements establish a formal framework for future lending, with annual reviews and ongoing monitoring designed to provide greater transparency and oversight as regeneration of the Teesworks site continues.
Tees Valley Mayor Ben Houchen said: “The transformation of Teesworks is creating jobs, attracting investment and laying the foundations for long-term economic growth across Teesside, Darlington, and Hartlepool. As the project continues to develop, this ensures financial arrangements supporting that regeneration are robust, transparent and provide value for taxpayers.”
“These agreements give greater clarity over how loans are managed and repaid, while providing the confidence needed to continue investing in the infrastructure and development that is helping to bring this site back to life.”+
Middlesbrough Mayor Chris Cooke, TVCA cabinet portfolio holder for finance, organisational improvement and business growth, said: “Teesworks is one of the most significant regeneration projects in the country, and it’s vital that the financial arrangements supporting its continued development are strong, transparent and accountable.
“By formalising these loan agreements, we are putting in place a clear framework that protects public investment, provides certainty for future decision-making and supports the long-term success of the site.
“Independent assurance has demonstrated the strength of these arrangements, giving us confidence that regeneration can continue while delivering value for taxpayers across Tees Valley.”
