Guidance

UK Guarantees Scheme

Find out if your infrastructure project could get a government-backed guarantee.

The UK Guarantees Scheme (UKGS) supports private investment in UK infrastructure projects. It works by offering a government-backed guarantee to help infrastructure projects access debt finance where they have been unable to raise finance in the financial markets.

The UKGS can issue up to £40 billion of guarantees and is open to at least 2026.

It has to date issued 9 guarantees totalling £1.8 billion of Treasury-backed infrastructure bonds and loans, supporting over £4 billion worth of investment.

How the scheme works

The scheme guarantees the principal and interest payments on infrastructure debt issued by the borrower to banks or investors. All guarantees are issued on a commercial basis. They are managed by infrastructure finance specialists in the Infrastructure and Projects Authority (IPA).

Guarantees are not a form of state aid.

Check if you’re eligible

UKGS is only available to ‘nationally significant’ infrastructure projects. Infrastructure is defined as any of the following:

  • water, electricity, gas, telecommunications, sewerage or other services
  • railway facilities (including rolling stock), roads or other transport facilities
  • health or educational facilities
  • court or prison facilities
  • housing

The IPA will also consider whether:

  • a project is financially credible
  • a project is ready to start construction
  • the project represents value for money

How to apply for the UKGS

  1. Have an initial discussion with the IPA.
  2. Work with the IPA to apply for a UK government guarantee.
  3. Treasury ministers will decide if your project is eligible – known as pre-qualification.
  4. Your application is assessed.
  5. Your application is put before a risk committee.
  6. Your application is either approved or rejected.

Contact us

Email: ukguarantees@ipa.gov.uk

Documents you may need

The UK Guarantees scheme key documents contain information you may find useful when using the UKGS.

Project update

Project Guarantee Status Sector Region
Drax Power - conversion from coal to biomass £75mn (bond) Released Energy Yorkshire
Sustainable Development Capital Limited £9mn (loan) Released Energy UK
Northern Line Extension £750mn (standby liquid facility) Issued Transport London
Mersey Gateway Bridge PPP £257mn (bond) Issued Transport North West
Ineos Grangemouth - Shale gas import and storage facilities €285mn (bond) Issued Energy Scotland
Speyside CHP plant £48mn (bond) Issued Energy Scotland
University of Northampton - relocation of campus £292mn (bond) Issued University Midlands
Countesswells - 3,000 unit housing development £86mn (loan) Issued Housing Scotland
University of Gloucestershire - Pittville Student Village £39mn (bond) Issued University Midlands
Hinkley Point C £2bn (bond) Approved Energy South West
Published 24 August 2017