National construction and property firm to be confirmed as development partner for Gwent councils

A NATIONAL construction and property firm is set to be confirmed as the development and investment partner for two Gwent councils. 
Torfaen and Blaenau Gwent borough councils work together in a federation arrangement and they set out last year how they intended appointing a private sector development partner to aid their plans to boost their economies. 
Members of Torfaen’s Labour cabinet agreed at their September 15 meeting to appoint Willmott Dixon as the strategic development and investment partner for both councils. Blaenau Gwent’s Labour cabinet is due to consider the same appointment in the coming weeks. 
The private partner is intended to assist the councils in accelerating regeneration projects, developing housing and “inclusive” economic growth and investment opportunities as identified by the joint blueprint for growth the councils have developed. 
The firm, which posted a pre-tax profit of £31.8m in the year to December 31, 2025 and a turnover of £1.1 billion, will be paid £300,000, plus VAT, to establish the commercial relationship over the first 12 months of what is intended to be a 10 year partnership. 
Under the contracting process agreed by the councils they could be required to take on the risk of putting forward upfront funding as they aim to develop a pipeline of regeneration and strategic infrastructure schemes intended to attract long-term capital investment.  
It is also intended the investment model can be scaled across various sites while developments could also be funded through payments related to planning permissions or specific development agreements. 
Andrew Lovegrove, Torfaen’s strategic director, said further decisions will still have to be approved by the cabinet and, in response to Cllr Sue Morgan who asked about “clawback arrangements”, said he was “confident” the council would be able to get money back in the appropriate circumstances. 
He told the cabinet the council had sought a partner “that understands the challenges we face in our shared economies.” 
Willmott Dixon, he said, are “excited” by the contract and ready to start work this week. 
The councils and its partner will also get involved in sites and infrastructure projects in private ownership where it’s necessary to support their joint local development plan, economic growth and social wellbeing. 
The contract is a direct award to a single company under a scheme developed by procurement body Pagabo for schemes worth between £40m and £100 million. 
There will be a governance arrangement between the councils and Willmott Dixon while Pagabo, which works across the public sector in the UK, states it has procured more than £13 billion in investment since 2020 without challenge under procurement rules. 
The councils consulted Torbay Council and its directors for insight on working with Willmott Dixon and having a development partner with feedback described as “positive”. 
The contract is subject to final procurement and legal assurance while performance targets and measures to assess how the deal reduces inequalities, its impact on local places and communities and social value will also be agreed.  ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

By BBC LDRS ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​