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<p>A Written Ministerial Statement of 5 June 2014 (Official Record, Col. 11WS) sets
out the reasons for the Government’s decision to provide contingent financial support
for the Thames Tideway Tunnel (TTT) project, and the scope of that provision. The
TTT project will be financed and delivered by a competitively tendered Infrastructure
Provider (IP), which will be an entirely separate entity to Thames Water. This will
keep project costs down and provide value for money for customers.</p><p> </p><p>
</p><p> </p><p>The support package is designed to make sure taxpayers’ interests are
protected throughout the construction phase to which it applies, and the likelihood
of it being called upon is remote. If the support package is not called upon, there
will be no cost to the taxpayer. The IP will pay the Government for certain limbs
of the support package at an appropriate commercial rate. The precise financial details
of the package and particular circumstances under which Government equity or short-term
loans would be provided to the project remain commercially sensitive while procurement
of the IP is ongoing.</p><p> </p><p> </p><p> </p><p>The Government formally notified
the European Commission of the State Aid implications of the support package earlier
this year. The EC has yet to announce its decision on State Aid approval. We will
inform Parliament of the outcome of Thames Water’s procurement of the IP when it is
complete.</p><p> </p>
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