The UK Infrastructure Bank (UKIB), with Rock Rail and Aviva, have launched a £100m funding platform for public transport authorities to decarbonise their bus network.
Both UKIB and HSBC UK have provided the platform, known as Rock Road, with debt finance. The government-owned policy bank provided £50m to the venture, with initial commitments totalling £100m.
The finance solution is targeted at public transport authorities and UK bus operators, with the initial commitments funding up to 250 zero emission buses and associated infrastructure, UKIB explained.
According to UKIB, its partnership with Aviva and Rock Rail will “crowd” further private capital to influence fleet decarbonisation. The platform will also help minimise outsourcing risks and capital outlay associated with residual value and battery replacement, the bank said.
From the initial commitments the partnership has signed its first deal to fund 60 battery-electric buses that well be leased to The Go-Ahead Group and deployed on routes throughout London.
John Flint, UKIB’s CEO, said: “The vast majority of the UK’s 36,500 buses are still diesel powered and so replacing these with a cleaner, greener alternative will be key in decarbonising the transport sector and achieving UK net zero targets.”
This move by UKIB comes as it loaned £190m to the Greater London Authority’s Green Finance Fund and provided a £300m loan through its Local Authority function to Transport for London in January.
At the time, the bank stated that the £300m loan provided a “blueprint” for supporting other local authorities and mass transit providers on similar schemes across the UK.
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