The National Wealth Fund (NWF) is providing a £92 million commitment to support crucial improvements to coastal flood defence barriers in Denbighshire, North Wales.
The debt financing package, which is provided through the NWF’s Local Authority function, offers the lowest cost long
Denbighshire County Council will be supported by the Welsh Government, who provide long-term grant funding to repay the loan via the Coastal Risk Management Programme. Construction work is well underway, with the projects on track to complete within the timescales of September 2025 for Rhyl and June 2025 for Prestatyn.
The projects will significantly improve the existing defence structures which are no longer deemed to meet current standards. At Rhyl, the works will include protection against erosion, and repairs to the existing sea defences, as well as a concrete facade to absorb energy from the waves. While works at Prestatyn will see the construction of an earth embankment set back from the front-line defences, to allow flood water overtopping the current defences to be contained until it can discharge back to sea.
The deal follows a £25m loan announced in October by the then UK Infrastructure Bank (before its transition into the National Wealth Fund) to support flood defence improvements at Aberaeron in West Wales. Rhyl, Prestatyn and Aberaeron have all suffered significant flooding in recent years and the risk of further flooding is likely to be exacerbated in the future as sea levels rise and extreme weather becomes more common due to climate change.
Lorna Pimlott, National Wealth Fund Managing Director, Local Authority Advisory & Lending, said:
The communities of Rhyl and Prestatyn will rely on these infrastructure improvements to protect their homes, communities, health and livelihoods against the devastating impact of flooding. We’re pleased to be able to provide financing to support Denbighshire County Council in delivering these crucial projects.
UKIB became the NWF on 14th October. The NWF will expand UKIB’s remit beyond infrastructure in support of the Government’s industrial strategy. With additional financial capacity and an enhanced risk budget, the NWF will be capitalised with £27.8bn to catalyse private investment in the market.
The NWF Local Authority function offers the lowest cost finance for local authority infrastructure projects at gilts + 40bps and is keen to speak to UK local authorities and combined authorities to help support similar fund models for projects aiming to tackle climate change and boost regional growth. For more information, get in touch.
For more information, get in touch.
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