Wales approves a €320 million circuit
While many emerging countries are launching large circuit projects to host F1, it is rare to see developed countries doing the same. This is, however, the case for Wales, which has given the green light to the construction of a 320 million euro circuit.
Great Britain is guaranteed to host F1 until 2027, thanks to the long-term contract signed with Bernie Ecclestone. Nevertheless, other regions of the United Kingdom also want to host major automotive events.
This is the case for Wales, which has just unveiled its Circuit of Wales project, with an estimated cost of 320 million euros. Of the 335 hectares involved in this project, nearly 3,000 jobs would be created during the construction phase, and nearly double that could also appear once all the buildings are completed.
However, the overall costs will not be borne by local taxpayers, as explained by Michael Carrick, head of the company responsible for the development of the valleys: « It is extremely important, not only for the regeneration of Blaenau Gwent but also for the UK economy, as it allows the mobilization of significant private capital. It is the perfect example of a new investment model since it is a partnership between private investments and the government to set up an activity that will transform the region. »
These well-known Public-Private Partnerships are currently multiplying because local authorities are seeking to minimize their immediate expenses while maintaining a significant level of investment. This is the model adopted for the construction of the new football stadium in Bordeaux or the famous MMArena in Le Mans. The latter has become an example of the risks associated with such partnerships: the club from Le Mans, struggling with severe financial difficulties, was relegated to amateur level and can no longer pay the monthly rent owed to the construction company that built the stadium. Consequently, the city of Le Mans is obliged to cover the costs, endangering its own finances while the stadium no longer has a resident team.
The project in Wales, besides the main track, will also include a karting track and another for motocross. But regional officials wanted to integrate this project into a comprehensive set of services for automobiles and motorsports, precisely the role of Silverstone at the heart of the Motorsport Valley. A hotel and a shopping center will also be planned to increase the attractiveness of this disadvantaged region.
A spokesperson commented: At the heart of this 355-hectare complex, there will be top-level facilities, approved to host the biggest motorsport events, both nationally and internationally, with a 5.6-kilometer track that will take advantage of Ebbw Vale’s unique topography. In addition to being the UK’s first high-tech motorsport-related complex with a low carbon impact, it will also be a business hub for global automotive companies and represent excellence in high technology.
Currently, F1 does not seem to be the priority, but the eyes of local leaders seem to be more focused on MotoGP. The latter does not seem indifferent to the Welsh offer, as Carmelo Ezpeleta, the director of Dorna (the equivalent of FOM for MotoGP), stated: “It’s fantastic. I think it’s a very important program for MotoGP and motorsports in general. It’s a good thing for the region, it’s a good thing for the people who live there, and we will provide all the help needed to the team behind this project. We have already worked with them and we will continue to do so.”
With the participation of www.Racingbusiness.fr
