South-west Wales is set to see a significant increase in private sector investment as several city deal projects gain momentum. The Swansea Bay City Deal, valued at £1.28 billion, includes nine projects focusing on energy, advanced manufacturing, digital innovation, and health and well-being. These initiatives span across Swansea, Neath Port Talbot, Carmarthenshire, and Pembrokeshire, with the goal of stimulating the economy and generating approximately 9,700 jobs over a 15-year period.
The success of the Swansea Bay City Deal hinges on securing £637 million from the private sector, with the remainder of the funding sourced from central Government, local authorities, health boards, and universities. A recent report presented to a committee overseeing the city deal revealed that £66 million of private sector investment had been confirmed in the initial six years up to March 2024, with an additional £78 million anticipated by the end of the current financial year.
Peter Austin, the city deal business engagement manager, expressed optimism about the evolving landscape, stating, “This is quite a positive position for us to be in at this time.” Projections suggest a substantial rise in private sector contributions over the next five years, with an estimated £669 million to be channelled into the region throughout the city deal duration – surpassing the initial forecast by £32 million. However, the attainment of such funding levels currently poses an “amber risk” due to existing uncertainties.
While progress has been promising, city deal stakeholders acknowledge the ongoing challenges and complexities involved in meeting funding targets. Each of the nine projects under the city deal has distinct goals and funding requirements, with varying degrees of private sector investment secured to date. For instance, the marine energy hub at Pembroke Dock has seen £17.7 million of its £20.1 million private sector goal realised, demonstrating significant headway.
In contrast, the health, well-being, and research development project Pentre Awel in Llanelli is still in its early stages of attracting the estimated £110.1 million private sector funding, which is expected to materialise in the coming years as the infrastructure matures. Similarly, the Swansea-based initiatives, including the construction of a large office building, research facilities, and the Swansea Arena, are striving to secure substantial private sector contributions, with progress varying across the individual components.
One of the pivotal projects within the city deal focuses on enhancing housing energy efficiency through the “homes as power stations” scheme, aiming to establish over 10,000 energy-efficient properties in the region. Although initial private sector funding for this project was modest at £1.4 million as of March 2024, the trajectory has now accelerated, underscoring the growing momentum of these transformative endeavours.
Despite the challenges posed by the Covid-19 pandemic and inflationary pressures, the city deal projects remain resilient in their pursuit of economic revitalisation and job creation. While some projects have encountered delays, such as the Swansea University-led investment in research and commercial campuses, stakeholders remain committed to realising the full potential of the city deal’s objectives.
As private sector investment continues to flow into south-west Wales through the Swansea Bay City Deal, the region anticipates a positive economic upturn with significant job creation opportunities on the horizon. The collaborative efforts of public and private stakeholders signify a shared commitment to driving sustainable growth and innovation, positioning south-west Wales as a hub for dynamic development and prosperity.