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Aberdeen set for £370 million infrastructure programme

Aberdeen set for £370 million infrastructure programme

Aberdeen is set to undergo a series of major infrastructure projects after the city council successfully raised £370 million through a bond issue.

The scheme is the first of its kind in Scotland, echoing the similar means used by Warrington to raise £150 million for infrastructure projects last year.

It means the council will be able to spend heavily on a series of developments, including a city centre masterplan, new schools, housing developments, improved roads and a number of economic developments around the city. There will also be work to enhance Aberdeen's digital connectivity.

The plans will create thousands of new construction jobs and will be central to the city's economic development. For many years Aberdeen has been able to rely on North Sea oil for its wealth, but with prices having plunged and future supplies sure to dwindle, this is no longer the cash cow it once was. This has led to the conclusion that better infrastructure is needed to bolster the onshore economy.

Discussing the successful bond issue, council leader Jennifer Laing said: "This is a remarkable achievement by this council in securing this investment in the future of our city.

"Having already secured a credit rating from Moody's Investors Service at Aa2, the issue of the bond sees another step forward by the council in delivering a stable and fiscally prudent financial strategy that is both affordable and sustainable for the future, as demonstrated by investor confidence."

A number of infrastructure projects are already taking place in Aberdeen, the most notable being the Aberdeen Western Peripheral Route, a bypass that will make travel around, northwards and southwards of the city easier for motorists, as well as opening up the potential expansion of the urban area inland.

With the current Aberdeen boundaries stretching several miles inland from the built-up historical 'granite city', there is ample space for new developments on the western fringes, with plans including housing and a new stadium and training ground complex for Aberdeen Football Club.

Image: iStock

 

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